Southern Company (NYSE:SO) shares are trading lower after the company reported a second-quarter 2024 operating revenue rose 12.4% Y/Y to $6.463 billion, beating the consensus of $6.099 billion.

Operating revenues by segment: Alabama Power $1.873 billion (+10.9% Y/Y), Georgia Power $2.875 billion (+20.2% Y/Y), Mississippi Power $364 million (+17.0% Y/Y), Southern Power $524 million (-0.2% Y/Y) and Southern Company Gas $831 million (-2.5% Y/Y).

Total Regulated Utility Customers increased 0.8% Y/Y, with Total Traditional Electric +1.2% and Southern Company Gas +0.4%. Kilowatt-Hour Sales rose by 3.9% Y/Y, with Retail sales up 5.8% and Wholesale sales down 1.1%.

Operating expenses rose to $4.52 billion from $4.46 billion in the quarter.

Adjusted EPS improved to $1.10, from $0.79 YoY, beating the consensus of $0.92.

For the second quarter of 2024, adjusted earnings were driven by higher utility revenues, which were partly offset by increased interest expenses, depreciation and amortization, and income taxes.

Net cash from operating activities in the six months totaled $4.00 billion, up from $2.90 billion a year ago.

As of June 30, 2024, cash, cash equivalents stood at $1.152 million.

Outlook: Southern reaffirms FY24 adjusted EPS guidance at $3.95-$4.05 vs cons. of $4.02.

Also, the company projects Q3 adj. EPS of $1.30 vs. $1.47 estimate.

Southern Company CEO Christopher C. Womack said "service territories, especially those within our Southeastern service footprint, remain strong with continuing customer growth and robust economic development."

Investors can gain exposure to the stock via SPDR Select Sector Fund – Utilities (NYSE:XLU) and Fidelity MSCI Utilities Index ETF (NYSE:FUTY).

Price Action: SO shares are down 0.08% at $83.45 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.