Stocks have climbed to new session highs. Energy (+6.0%) remains the
best performer, but the utilities sector (+5.5%) is not far behind.
Electricity generation, wholesaler, and retailer Southern Company (SO
35.84, +2.26) is advancing with marked gains as investors digest its
latest financial results. Though its earnings were a penny shy of the
consensus estimate of $1.02 per share, Southern saw revenue grow 12%
year-over-year and net income increase 2% from the prior year.
Driving revenue growth were increased retail rates and market-response
rates to industrial customers. Income failed to keep up with revenue
growth due to depreciation associated with increased investment.
Southern noted the investments were needed to produce cleaner energy
and maintain reliability.