Boston, MA 04/30/2014 (wallstreetpr) – The Southern Company (NYSE:SO), a $41 billion electric utility company, reports Q12014 before the market opens today. The company, regarded as one of the best managed utility companies, has had a track record of improving earnings and dividend over the past quarters. Moreover, revenue growth has also been commonplace in the company, and the most recent past quarter saw the company generate higher revenue thanks to the favorable weather condition.
As the company reports the latest quarter, the same favorable weather condition and sound management are likely to support positive revenue and earnings. Moreover, the estimations that earnings would grow between 4 and 5 percent also go a long way to suggest the optimism that the management has over the company’s operations.
The robust demand for energy, stable prices and expanding customer base are likely to lead to strong growth in revenue. In any case, the company’s earnings grew more than 9 percent in the previous quarter, reflecting a positive trend amid strengthening market conditions in the energy market.
The internal improvements in the company have more often than not come to the rescue of the bottom-line even where revenue growth seems weak. Therefore, with such solid expenses and cost controls remaining in place, the upcoming reporting could get some support from the same attributes.
Dividend adjustment
The Southern Company (NYSE:SO) has made positive adjustments to its dividend payout in 13 consecutive years. Therefore, its quarterly dividend stands at 53 cents per share and $2.10 in annualized basis. The fact that the company remains confident about its cash position while making dividend hikes could also suggest that the upcoming reporting could lead to more positive news for the investors.
Wait and see
The Southern Company (NYSE:SO)’s upcoming report is awaited with bated breath. But it remains to be seen if the company will remain true to its own track record. Analysts at Zacks rate the company “hold.” Meanings that long-term focused investors have nothing to worry.
Shares of the energy utility fell about 0.70 percent in the previous session, perhaps giving opportunity for investors will long-term outlook to acquire the stock at a discounted price.
