Southern (NYSE:SO) Releases FY 2028 Earnings Guidance

Key Points

• FY2028 EPS guidance set at $5.25–$5.45, roughly in line with the $5.25 consensus, while FY2026 guidance was updated to $4.50–$4.60 (midpoint slightly below the ~4.57 consensus).
• Q1 beat expectations with adjusted EPS of $1.32 versus $1.22 expected and revenue of $8.40B vs. $8.26B, driven by higher power demand.
• Dividend raised to $0.76 quarterly (annualized $3.04, ~3.2% yield), while insiders including CEO Kimberly Greene sold shares (CEO sold 25,000), modestly reducing insider ownership.

Southern (NYSE:SO - Get Free Report) issued an update on its FY 2028 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 5.250-5.450 for the period, compared to the consensus estimate of 5.250. The company issued revenue guidance of -. Southern also updated its FY 2026 guidance to 4.500-4.600 EPS.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on SO. Weiss Ratings reiterated a "buy (b)" rating on shares of Southern in a report on Wednesday, January 21st. Seaport Research Partners downgraded shares of Southern from a "buy" rating to a "neutral" rating in a research note on Monday, April 20th. Morgan Stanley dropped their target price on shares of Southern from $94.00 to $92.00 and set an "underweight" rating on the stock in a research note on Tuesday, April 21st. Truist Financial assumed coverage on shares of Southern in a research note on Tuesday, April 21st. They issued a "hold" rating and a $103.00 target price on the stock. Finally, Jefferies Financial Group restated a "hold" rating and issued a $102.00 target price on shares of Southern in a research note on Monday, February 23rd. Seven equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Southern currently has a consensus rating of "Hold" and an average target price of $99.08.

Southern Trading Down 0.9%

NYSE:SO opened at $93.59 on Thursday. Southern has a 52 week low of $83.09 and a 52 week high of $100.83. The firm has a 50 day moving average of $95.86 and a 200 day moving average of $92.09. The company has a quick ratio of 0.47, a current ratio of 0.65 and a debt-to-equity ratio of 1.69. The stock has a market capitalization of $105.60 billion, a price-to-earnings ratio of 23.81, a PEG ratio of 2.83 and a beta of 0.41.

Southern (NYSE:SO - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.22 by $0.10. The business had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.26 billion. Southern had a net margin of 14.69% and a return on equity of 12.52%. The business's quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the company posted $1.23 earnings per share. As a group, sell-side analysts anticipate that Southern will post 4.58 earnings per share for the current fiscal year.

Southern Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 8th. Stockholders of record on Monday, May 18th will be paid a $0.76 dividend. The ex-dividend date is Monday, May 18th. This is an increase from Southern's previous quarterly dividend of $0.74. This represents a $3.04 dividend on an annualized basis and a dividend yield of 3.2%. Southern's dividend payout ratio (DPR) is currently 75.32%.

Insiders Place Their Bets

In other news, CEO Kimberly S. Greene sold 25,000 shares of the stock in a transaction on Monday, March 30th. The shares were sold at an average price of $96.67, for a total value of $2,416,750.00. Following the sale, the chief executive officer owned 103,602 shares in the company, valued at $10,015,205.34. This represents a 19.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Christopher Cummiskey sold 6,669 shares of the firm's stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $96.55, for a total transaction of $643,891.95. Following the sale, the executive vice president owned 30,800 shares in the company, valued at approximately $2,973,740. This represents a 17.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.16% of the stock is owned by corporate insiders.

More Southern News

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Q1 results beat expectations: Southern reported adjusted Q1 EPS of $1.32 (GAAP $1.21) and revenue of $8.40B, topping consensus; management cited higher power demand as a driver. This beat and the demand pickup are supportive for earnings and cash flow. Article Title
• Positive Sentiment: Company press release confirms the beat: Southern reported $1.4B GAAP net income and $1.5B excluding certain items (adjusted $1.32/share), reinforcing the Reuters/market beat. Strong net margin (~14.7%) and ROE support fundamentals. Article Title
• Positive Sentiment: Analyst lift / favorable coverage: Erste Group nudged FY2026 EPS estimates slightly higher (to $4.57) and Wells Fargo recently raised its price target, signaling incremental analyst support for the stock’s valuation and outlook.
• Neutral Sentiment: Longer-term guidance in line: Southern provided FY2028 EPS guidance of $5.25–$5.45, which brackets the consensus and suggests management expects multi‑year earnings growth consistent with expectations.
• Neutral Sentiment: Sector note — utilities ETF context: Broader commentary on the Utilities Select Sector ETF (XLU) is available for investors considering sector exposure, but it’s not company-specific. Article Title
• Negative Sentiment: FY2026 guidance slightly conservative vs. consensus: Southern updated FY2026 EPS guidance to $4.50–$4.60 versus the $4.57 consensus — the midpoint is a touch below some estimates, which can temper near‑term upside expectations.
• Negative Sentiment: Q2 guide misses by a hair: Q2 EPS guidance was set at $1.00, below the ~$1.02 consensus. While small, this miss could prompt short‑term caution among traders focused on quarterly beats.
• Positive Sentiment: Investor commentary: Recent writeups highlight Southern’s strong profitability among renewable/utility peers and incremental analyst target raises, supporting investor interest in the name. Article Title

Hedge Funds Weigh In On Southern

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC lifted its stake in shares of Southern by 17.5% in the first quarter. Empowered Funds LLC now owns 34,003 shares of the utilities provider's stock worth $3,127,000 after buying an additional 5,067 shares in the last quarter. Schnieders Capital Management LLC. lifted its stake in shares of Southern by 0.7% in the second quarter. Schnieders Capital Management LLC. now owns 59,217 shares of the utilities provider's stock worth $5,438,000 after buying an additional 393 shares in the last quarter. WINTON GROUP Ltd purchased a new position in shares of Southern in the second quarter worth about $655,000. Sei Investments Co. lifted its stake in shares of Southern by 11.5% in the second quarter. Sei Investments Co. now owns 449,960 shares of the utilities provider's stock worth $41,320,000 after buying an additional 46,504 shares in the last quarter. Finally, Treasurer of the State of North Carolina lifted its stake in shares of Southern by 2.7% in the second quarter. Treasurer of the State of North Carolina now owns 514,736 shares of the utilities provider's stock worth $47,268,000 after buying an additional 13,392 shares in the last quarter. 64.10% of the stock is owned by hedge funds and other institutional investors.

About Southern

Southern Company NYSE: SO is an Atlanta-based energy holding company that provides electric and gas utility services and owns power generation assets across the United States. Founded in 1945, the company operates a portfolio of regulated electric utilities and affiliated businesses that generate, transmit and distribute electricity to residential, commercial and industrial customers.

Southern's principal regulated electric subsidiaries include Georgia Power, Alabama Power and Mississippi Power, which serve large portions of the southeastern United States.

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