Zacks Research Decreases Earnings Estimates for Southern

Key Points

• Zacks Research has lowered its FY2025 earnings per share (EPS) estimate for Southern Company to $4.21, slightly down from the previous estimate of $4.22.
• Southern Company's recent quarterly earnings report showed an EPS of $0.91, missing the consensus estimate of $0.99, despite revenue exceeding projections at $6.97 billion.
• The company declared a quarterly dividend of $0.74 per share, resulting in an annualized dividend of $2.96 with a dividend yield of 3.2%.

Southern Company (The) (NYSE:SO - Free Report) - Research analysts at Zacks Research dropped their FY2025 EPS estimates for shares of Southern in a research report issued on Wednesday, September 17th. Zacks Research analyst Team now expects that the utilities provider will post earnings per share of $4.21 for the year, down from their prior forecast of $4.22. The consensus estimate for Southern's current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Southern's Q1 2026 earnings at $1.22 EPS, Q2 2026 earnings at $0.96 EPS, Q3 2026 earnings at $1.21 EPS, Q4 2026 earnings at $1.18 EPS and Q2 2027 earnings at $1.13 EPS.

Southern (NYSE:SO - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The utilities provider reported $0.91 earnings per share for the quarter, missing analysts' consensus estimates of $0.99 by ($0.08). Southern had a net margin of 15.10% and a return on equity of 12.09%. The firm had revenue of $6.97 billion during the quarter, compared to analysts' expectations of $6.70 billion. During the same quarter last year, the business earned $1.10 earnings per share. The business's quarterly revenue was up 7.9% on a year-over-year basis. Southern has set its Q3 2025 guidance at 1.500-1.500 EPS. FY 2025 guidance at 4.200-4.300 EPS.

Several other equities research analysts have also commented on the stock. Wall Street Zen lowered shares of Southern from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. BMO Capital Markets boosted their target price on shares of Southern from $98.00 to $102.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 22nd. Barclays boosted their target price on shares of Southern from $90.00 to $91.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 16th. Scotiabank boosted their target price on shares of Southern from $98.00 to $99.00 and gave the stock a "sector outperform" rating in a research report on Friday, August 1st. Finally, JPMorgan Chase & Co. boosted their target price on shares of Southern from $97.00 to $98.00 and gave the stock a "neutral" rating in a research report on Thursday, August 21st. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $94.92.

Southern Price Performance

Shares of NYSE SO traded up $0.41 during trading on Thursday, hitting $91.86. 9,381,376 shares of the company were exchanged, compared to its average volume of 3,632,029. The company has a market cap of $101.05 billion, a price-to-earnings ratio of 23.61, a PEG ratio of 3.16 and a beta of 0.41. Southern has a 1 year low of $80.46 and a 1 year high of $96.44. The firm's fifty day moving average price is $93.49 and its 200 day moving average price is $91.19. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.74 and a quick ratio of 0.54.

Institutional Investors Weigh In On Southern

Several hedge funds have recently modified their holdings of SO. Investors Research Corp boosted its stake in shares of Southern by 400.0% during the 1st quarter. Investors Research Corp now owns 270 shares of the utilities provider's stock worth $25,000 after purchasing an additional 216 shares during the last quarter. Ameriflex Group Inc. increased its stake in shares of Southern by 275.0% during the 2nd quarter. Ameriflex Group Inc. now owns 300 shares of the utilities provider's stock valued at $27,000 after acquiring an additional 220 shares during the last quarter. Cheviot Value Management LLC acquired a new position in shares of Southern during the 1st quarter valued at about $28,000. Advantage Trust Co increased its stake in shares of Southern by 1,428.6% during the 2nd quarter. Advantage Trust Co now owns 321 shares of the utilities provider's stock valued at $29,000 after acquiring an additional 300 shares during the last quarter. Finally, Financial Connections Group Inc. acquired a new position in shares of Southern during the 1st quarter valued at about $33,000. 64.10% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Southern news, CEO Kimberly S. Greene sold 13,158 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $95.00, for a total transaction of $1,250,010.00. Following the sale, the chief executive officer directly owned 93,661 shares of the company's stock, valued at $8,897,795. This trade represents a 12.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.16% of the stock is owned by corporate insiders.

Southern Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 18th were paid a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend was Monday, August 18th. Southern's dividend payout ratio (DPR) is currently 76.09%.

Southern Company Profile

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations.