KeyCorp Issues Optimistic Forecast for Southern Earnings

Key Points

• KeyCorp raised Southern’s Q3 2026 EPS estimate to $1.74 from $1.66, while projecting earnings growth through FY2030. However, it maintained an “Underweight” rating and a $74 price target.
• Analyst sentiment remains mixed: Southern has an overall consensus rating of “Hold” and an average price target of $99.25, with recent target reductions from Barclays, Citigroup and JPMorgan.
• Southern shares opened at $89.34, and the utility continues to offer a $0.76 quarterly dividend, equal to a 3.4% yield. Institutional investors own 64.1% of the company, while risks include valuation sensitivity to interest rates, cash-flow pressure and a reported utility data breach investigation.

Southern Company (The) (NYSE:SO - Free Report) - Analysts at KeyCorp raised their Q3 2026 earnings estimates for Southern in a research report issued to clients and investors on Monday, October 12th. KeyCorp analyst S. Karp now expects that the utilities provider will post earnings per share of $1.74 for the quarter, up from their prior forecast of $1.66. KeyCorp has an "Underweight" rating and a $74.00 price target on the stock. The consensus estimate for Southern's current full-year earnings is $4.59 per share. KeyCorp also issued estimates for Southern's Q4 2026 earnings at $0.42 EPS, FY2028 earnings at $5.37 EPS, FY2029 earnings at $5.77 EPS and FY2030 earnings at $6.19 EPS.

A number of other research firms have also commented on SO. Wall Street Zen upgraded Southern from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Barclays lowered their price objective on Southern from $99.00 to $98.00 and set an "equal weight" rating for the company in a research report on Thursday, June 18th. Weiss Ratings restated a "buy (b)" rating on shares of Southern in a research report on Wednesday, July 29th. Citigroup cut their price objective on Southern from $114.00 to $104.00 and set a "buy" rating on the stock in a research note on Friday, September 25th. Finally, JPMorgan Chase & Co. reduced their target price on Southern from $101.00 to $94.00 and set a "neutral" rating on the stock in a report on Tuesday. Seven equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $99.25.

Southern Stock Up 1.4%

Shares of NYSE:SO opened at $89.34 on Thursday. The firm has a market cap of $102.78 billion, a P/E ratio of 19.15, a P/E/G ratio of 2.34 and a beta of 0.31. The company has a quick ratio of 0.59, a current ratio of 0.79 and a debt-to-equity ratio of 1.62. Southern has a 12-month low of $81.69 and a 12-month high of $100.83. The business has a fifty day simple moving average of $87.81 and a 200 day simple moving average of $92.23.

Southern (NYSE:SO - Get Free Report) last issued its earnings results on Wednesday, July 29th. The utilities provider reported $1.13 earnings per share for the quarter, beating analysts' consensus estimates of $1.01 by $0.12. The firm had revenue of $6.98 billion for the quarter, compared to analyst estimates of $7.23 billion. Southern had a net margin of 15.43% and a return on equity of 12.93%. The company's quarterly revenue was up .1% on a year-over-year basis. During the same quarter last year, the business posted $0.79 earnings per share.

Institutional Trading of Southern

Institutional investors have recently bought and sold shares of the company. Evergreen Advisors LLC purchased a new stake in Southern during the first quarter worth about $25,000. Scarborough Advisors LLC bought a new stake in Southern in the first quarter worth about $25,000. Bullseye Investment Management LLC purchased a new position in Southern in the second quarter valued at about $26,000. J.Safra Asset Management Corp purchased a new position in Southern in the second quarter valued at about $30,000. Finally, Frazier Financial Advisors LLC bought a new position in shares of Southern during the 2nd quarter valued at approximately $31,000. Institutional investors own 64.10% of the company's stock.

Southern Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 17th were issued a $0.76 dividend. The ex-dividend date was Monday, August 17th. This represents a $3.04 annualized dividend and a yield of 3.4%. Southern's payout ratio is presently 72.90%.

Key Southern News

Here are the key news stories impacting Southern this week:

• Positive Sentiment: KeyCorp raised its Q3 2026 EPS estimate to $1.74 from $1.66 and modestly increased its FY2026, FY2028, FY2029 and FY2030 forecasts. The revisions suggest some confidence in Southern’s longer-term earnings growth, although the increases were small. Southern Stock Price Target Cut by KeyCorp
• Positive Sentiment: Zacks highlighted Southern’s history of earnings surprises and said the company has factors that could support another quarterly beat. A potential earnings beat could help offset some of the valuation concerns. Why Southern Co. Is Poised to Beat Earnings Estimates Again
• Neutral Sentiment: Investors continue to view Southern as a defensive dividend utility, supported by regulated operations, population growth, industrial expansion and potential data-center electricity demand. However, utility valuations remain sensitive to interest rates and cash-flow needs. Is Southern Company’s 3.5% Dividend Yield Worth the Price?
• Negative Sentiment: KeyCorp sharply reduced its Q4 2026 EPS forecast to $0.42 from $0.60, implying weaker near-term earnings momentum despite the higher Q3 estimate. Its $74 target and Underweight rating signal substantial downside concern. Southern Stock Price Target Cut by KeyCorp
• Negative Sentiment: JPMorgan’s target reduction adds to the analyst-pressure narrative, while a report citing near-term cash-flow pressure raises concerns about funding, capital spending and dividend flexibility. JPMorgan Lowers Expectations for Southern Stock Price Southern Company Long-Term Growth Meets Near-Term Cash Flow Pressure
• Negative Sentiment: A law firm is investigating a reported data breach involving Georgia Power, Alabama Power and Mississippi Power. The investigation does not establish liability, but potential remediation costs, litigation and reputational damage represent additional risks. Utility Data Breach Investigation

About Southern

Southern Company NYSE: SO is a diversified energy holding company headquartered in Atlanta, Georgia. Through its operating subsidiaries, the company generates, transmits, distributes and sells electricity, while also providing natural gas distribution and related energy services.

Southern's regulated electric utilities include Alabama Power, Georgia Power and Mississippi Power, which serve residential, commercial and industrial customers across the southeastern United States. The company's portfolio includes coal, natural gas, nuclear, hydroelectric and renewable generation assets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.