SO – Market expectations are for Uniform ROA to sustain current levels, but management may be concerned about productivity, sales, and milestone execution

• The Southern Company (SO:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 34.4x Uniform P/E, implying somewhat bullish expectations for the firm. However, management may be concerned about fuel load productivity, industrial and commercial sales declines, and their execution on projections and milestones.
  
  
• Specifically, management may be concerned about Unit 4 fuel load productivity, the review of ITAAC licenses submitted to the Nuclear Regulatory Commission (NRC), and potential cyber or physical infrastructure attacks. In addition, they may be concerned about a decline in industrial and commercial sales, and they may lack confidence in their ability to meet fuel load projections and milestones integrating plants with non-nuclear heat sources. Furthermore, they may also lack confidence in their ability to progress through the next milestones for Unit 4, sustain Southern Company Gas’ annual in-rate base growth, and maintain aggregate retail sales recovery.