Investors in The Southern Company (NYSE:SO) had a good week, as its shares rose 3.3% to close at US$88.40 following the release of its annual results. It was a credible result overall, with revenues of US$27b and statutory earnings per share of US$3.99 both in line with analyst estimates, showing that Southern is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Southern

Following the latest results, Southern's 13 analysts are now forecasting revenues of US$27.6b in 2025. This would be a reasonable 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.9% to US$4.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$27.2b and earnings per share (EPS) of US$4.31 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$90.46. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Southern, with the most bullish analyst valuing it at US$104 and the most bearish at US$72.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Southern shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Southern's past performance and to peers in the same industry. We would highlight that Southern's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 6.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Southern.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Southern's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$90.46, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Southern going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Southern (1 can't be ignored!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.