Scotiabank Comments on Southern's FY2026 Earnings (NYSE:SO)

Key Points

• Scotiabank raised its FY2026 EPS estimate for Southern to $4.71 from $4.58, above the current consensus estimate of $4.65. It maintained a Sector Perform rating and a $93 price target.
• Southern reported quarterly EPS of $1.94, beating the $1.71 consensus, while revenue of $8.84 billion exceeded estimates and rose 13% year over year.
• Analysts’ overall view remains Hold, with a consensus price target of $97.32; the company also declared a quarterly dividend of $0.76 per share, equivalent to a 3.3% yield.

Southern Company (The) (NYSE:SO - Free Report) - Scotiabank upped their FY2026 earnings estimates for shares of Southern in a research note issued on Wednesday, November 11th. Scotiabank analyst A. Weisel now anticipates that the utilities provider will earn $4.71 per share for the year, up from their prior forecast of $4.58. Scotiabank currently has a "Sector Perform" rating and a $93.00 target price on the stock. The consensus estimate for Southern's current full-year earnings is $4.65 per share.

Other equities analysts also recently issued research reports about the stock. JPMorgan Chase & Co. cut their price target on shares of Southern from $101.00 to $94.00 and set a "neutral" rating on the stock in a research note on Tuesday, October 13th. DA Davidson set a $98.00 price target on shares of Southern in a report on Wednesday, October 21st. HSBC began coverage on shares of Southern in a research note on Thursday, October 22nd. They set a "buy" rating and a $99.50 price objective for the company. Mizuho set a $106.00 price objective on Southern and gave the stock an "outperform" rating in a report on Friday, July 31st. Finally, Truist Financial cut their target price on Southern from $97.00 to $93.00 and set a "hold" rating on the stock in a research report on Thursday, October 15th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $97.32.

Southern Price Performance

Southern stock opened at $92.32 on Friday. Southern has a 1 year low of $81.69 and a 1 year high of $99.58. The firm has a 50 day moving average price of $88.57 and a 200 day moving average price of $92.58. The company has a market cap of $107.49 billion, a price-to-earnings ratio of 21.03, a PEG ratio of 2.44 and a beta of 0.30. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.62 and a current ratio of 0.84.

Southern (NYSE:SO - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The utilities provider reported $1.94 earnings per share for the quarter, topping the consensus estimate of $1.71 by $0.23. Southern had a net margin of 16.00% and a return on equity of 13.57%. The business had revenue of $8.84 billion for the quarter, compared to analyst estimates of $8.38 billion. During the same period in the prior year, the firm posted $1.54 EPS. The company's revenue was up 13.0% on a year-over-year basis.

Hedge Funds Weigh In On Southern

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Legal & General Group Plc acquired a new stake in Southern in the 2nd quarter valued at $737,256,000. State Street Corp lifted its stake in shares of Southern by 5.6% during the third quarter. State Street Corp now owns 68,436,100 shares of the utilities provider's stock worth $5,672,668,000 after purchasing an additional 3,626,392 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Southern during the second quarter worth about $264,829,000. Hsbc Holdings PLC acquired a new position in shares of Southern during the second quarter worth about $191,120,000. Finally, Energy Income Partners LLC purchased a new stake in shares of Southern in the second quarter worth about $166,114,000. Institutional investors and hedge funds own 64.10% of the company's stock.

Insider Transactions at Southern

In other news, EVP Sterling Spainhour, Jr. sold 3,333 shares of the stock in a transaction on Friday, November 6th. The shares were sold at an average price of $91.81, for a total value of $306,002.73. Following the completion of the sale, the executive vice president owned 31,886 shares of the company's stock, valued at $2,927,453.66. This represents a 9.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Southern Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 16th will be paid a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a yield of 3.3%. The ex-dividend date is Monday, November 16th. Southern's payout ratio is currently 69.25%.

Southern Company Profile

Southern Company is an energy holding company based in Atlanta, Georgia. Through its subsidiaries, it generates, transmits and distributes electricity and provides natural gas service, primarily across the southeastern United States. Its electric utility businesses include Alabama Power, Georgia Power and Mississippi Power, which serve customers in their respective states. Southern Company also owns Southern Power, which develops and operates wholesale power generation assets, and Southern Company Gas, whose businesses distribute natural gas to customers in several states.

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