US Capital Advisors Expects Weaker Earnings for South Bow

Key Points

• US Capital Advisors lowered South Bow’s Q3 2026 EPS forecast to $0.30 from $0.41, below the company’s $1.81 full-year consensus earnings estimate.
• South Bow’s latest quarter beat expectations, reporting $0.50 EPS versus the $0.45 consensus and revenue of $546 million versus estimates of $496.87 million.
• The stock was trading near its 52-week high at $38.45, while analysts maintained a consensus “Hold” rating with an average price target of $33.00. South Bow also declared a quarterly dividend of $0.50, yielding about 5.2% annually.

South Bow Corporation (NYSE:SOBO - Free Report) - Stock analysts at US Capital Advisors cut their Q3 2026 EPS estimates for shares of South Bow in a report released on Thursday, August 20th. US Capital Advisors analyst J. Carreker now anticipates that the company will post earnings of $0.30 per share for the quarter, down from their previous estimate of $0.41. The consensus estimate for South Bow's current full-year earnings is $1.81 per share. US Capital Advisors also issued estimates for South Bow's Q4 2026 earnings at $0.31 EPS, Q1 2027 earnings at $0.32 EPS, Q3 2027 earnings at $0.33 EPS and Q4 2027 earnings at $0.33 EPS.

South Bow (NYSE:SOBO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.05. The firm had revenue of $546.00 million during the quarter, compared to analyst estimates of $496.87 million. South Bow had a net margin of 22.99% and a return on equity of 15.84%.

Other equities analysts also recently issued research reports about the company. National Bank Financial raised their target price on South Bow from $31.00 to $35.00 and gave the stock a "sector perform" rating in a research report on Monday, June 1st. Wall Street Zen upgraded South Bow from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. BMO Capital Markets reiterated a "market perform" rating on shares of South Bow in a research note on Monday, July 6th. Raymond James Financial started coverage on South Bow in a report on Tuesday, June 9th. They set an "outperform" rating for the company. Finally, Canadian Imperial Bank of Commerce boosted their target price on shares of South Bow from $33.00 to $36.00 and gave the company a "neutral" rating in a research note on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $33.00.

South Bow Trading Up 2.2%

SOBO stock opened at $38.45 on Friday. South Bow has a 1-year low of $25.01 and a 1-year high of $38.94. The firm has a market cap of $8.02 billion, a P/E ratio of 17.40 and a beta of 0.15. The business's 50 day moving average is $36.63 and its 200-day moving average is $34.64. The company has a current ratio of 1.52, a quick ratio of 1.44 and a debt-to-equity ratio of 2.15.

Institutional Investors Weigh In On South Bow

A number of large investors have recently bought and sold shares of SOBO. Intact Investment Management Inc. grew its stake in shares of South Bow by 19.6% during the fourth quarter. Intact Investment Management Inc. now owns 964,360 shares of the company's stock valued at $26,522,000 after purchasing an additional 158,100 shares during the last quarter. Bank of America Corp DE raised its position in South Bow by 23.3% in the 1st quarter. Bank of America Corp DE now owns 1,993,768 shares of the company's stock worth $66,432,000 after purchasing an additional 376,108 shares during the last quarter. Renaissance Technologies LLC bought a new position in South Bow in the 1st quarter worth approximately $1,162,000. First Trust Advisors LP acquired a new position in South Bow during the 1st quarter worth $945,000. Finally, Vanguard Group Inc. lifted its holdings in South Bow by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 8,667,365 shares of the company's stock worth $238,387,000 after buying an additional 118,147 shares in the last quarter.

South Bow Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 29th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 5.2%. The ex-dividend date of this dividend is Tuesday, September 29th. South Bow's payout ratio is presently 90.50%.

About South Bow

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.

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