Southern Company Update, 2nd Quarter 2024
Utility investing is typically a straight forward prospect with very little surprises, good or bad. This is why utilities are commonly considered “safe haven investments” by academics and investors when the economy turns South. Revenue and earnings growth are generally predictable and the dividend is generally predictable as a result which typically results in lower stock volatility when economic growth is waning. Artificial Intelligence seems to have changed that narrative, however. Because AI requires extensive computing power, data center demand for utilities [...]
Southern Company Update, 1st Quarter 2024
Southern Company stock, along with many other utilities, has had a rare, strong rally over the last couple of weeks. Heavy buying in the utilities sector can often be a harbinger for market volatility especially if it comes at the expense of the riskier sectors like consumer discretionary stocks (clothing, vehicles, restaurants, etc.). And that’s pretty much what we’ve seen with the rally beginning April 16. Stocks like LuluLemon, Nike, and Starbucks have sold off while utilities rally in conjunction. Ultimately, this [...]
Southern Company Update, 4th Quarter 2023
Southern Company had a respectable end of the year for 2023 regarding the growth of its business. Usually with electric utilities, no news is good news. Since there was not a significant event in the earnings call, the utility business should continue as expected with steady earnings growth based on Southern Company forecasts. In this case, 2023 earnings per share (EPS) results hit the top end of full year guidance from management. That’s about a 2% growth rate over 2022 results. Management [...]
Plant Vogtle in Detail
The Vogtle nuclear power plant in Waynesboro, Georgia is nearly complete after construction began nearly 14 years ago. It was announced earlier this year that Unit 3 safely reached 100% power and was successfully connected to the Georgia electric grid. Unit 4 has completed hot functional testing and as of May 2nd is ready for fuel loading. Should Unit 4 reach it’s remaining fuel milestones over the course of the year, it should be in-service by December of 2023 (1). This would [...]