KeyCorp Has Bullish Estimate for Southern Q3 Earnings

Key Points

• KeyCorp upgraded its Q3 2025 earnings estimate for Southern Company to $1.50 from $1.11, maintaining an "Underweight" rating and a price target of $87.00.
• Southern Company reported $0.91 EPS in its last quarter, missing estimates, but had a revenue increase of 7.9% year-over-year.
• Southern announced a quarterly dividend of $0.74 per share, representing a 3.0% yield and a payout ratio of 76.09%.

Southern Company (The) (NYSE:SO - Free Report) - Equities research analysts at KeyCorp raised their Q3 2025 earnings estimates for shares of Southern in a report issued on Wednesday, October 15th. KeyCorp analyst S. Karp now anticipates that the utilities provider will post earnings per share of $1.50 for the quarter, up from their prior estimate of $1.11. KeyCorp currently has a "Underweight" rating and a $87.00 price target on the stock. The consensus estimate for Southern's current full-year earnings is $4.29 per share. KeyCorp also issued estimates for Southern's FY2025 earnings at $4.27 EPS, FY2027 earnings at $4.88 EPS and FY2028 earnings at $5.18 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). The company had revenue of $6.97 billion for the quarter, compared to analysts' expectations of $6.70 billion. Southern had a return on equity of 12.09% and a net margin of 15.10%.The business's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $1.10 EPS. Southern has set its Q3 2025 guidance at 1.500-1.500 EPS. FY 2025 guidance at 4.200-4.300 EPS.

A number of other equities research analysts have also issued reports on the stock. Scotiabank reiterated a "sector perform" rating and set a $99.00 target price on shares of Southern in a report on Friday, October 3rd. Weiss Ratings reiterated a "buy (b)" rating on shares of Southern in a report on Wednesday, October 8th. Wall Street Zen lowered shares of Southern from a "hold" rating to a "sell" rating in a report on Saturday, August 2nd. UBS Group increased their target price on shares of Southern from $100.00 to $104.00 and gave the stock a "neutral" rating in a report on Friday, October 10th. Finally, Evercore ISI assumed coverage on shares of Southern in a report on Monday, October 6th. They set an "in-line" rating and a $103.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $98.57.

Southern Stock Performance

NYSE:SO opened at $98.44 on Friday. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.54 and a current ratio of 0.74. The stock has a market capitalization of $108.29 billion, a P/E ratio of 25.31, a PEG ratio of 3.53 and a beta of 0.43. The company has a 50 day moving average price of $93.94 and a 200 day moving average price of $91.95. Southern has a fifty-two week low of $80.46 and a fifty-two week high of $100.84.

Institutional Investors Weigh In On Southern

Several hedge funds and other institutional investors have recently bought and sold shares of SO. Ameriflex Group Inc. raised its stake in Southern by 275.0% during the 2nd quarter. Ameriflex Group Inc. now owns 300 shares of the utilities provider's stock worth $27,000 after acquiring an additional 220 shares in the last quarter. Cheviot Value Management LLC purchased a new position in Southern during the 1st quarter worth $28,000. Advantage Trust Co grew its position in Southern by 1,428.6% during the 2nd quarter. Advantage Trust Co now owns 321 shares of the utilities provider's stock worth $29,000 after purchasing an additional 300 shares during the last quarter. Financial Connections Group Inc. purchased a new position in Southern during the 1st quarter worth $33,000. Finally, Accredited Wealth Management LLC purchased a new position in Southern during the 1st quarter worth $36,000. 64.10% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CEO Kimberly S. Greene sold 13,158 shares of Southern stock in a transaction on 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 in the company, valued at $8,897,795. This trade represents a 12.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.16% of the stock is owned by corporate insiders.

Southern Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 18th were paid a dividend of $0.74 per share. This represents a $2.96 annualized dividend and a yield of 3.0%. The ex-dividend date was Monday, August 18th. Southern's dividend payout ratio (DPR) is currently 76.09%.

About Southern

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.

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