US Capital Advisors Predicts Lower Earnings for South Bow

Key Points

• US Capital Advisors has revised South Bow Corporation's FY2025 earnings per share estimate down from $1.64 to $1.57, while the current consensus estimate for full-year earnings is $1.74.
• South Bow recently paid a quarterly dividend of $0.50, resulting in an annualized yield of 7.71%, though its payout ratio stands at 108.11%.
• The stock holds a consensus rating of "Hold" among analysts, with a current target price averaging $28.80.

South Bow Corporation (NYSE:SOBO - Free Report) - Investment analysts at US Capital Advisors decreased their FY2025 earnings estimates for shares of South Bow in a research note issued to investors on Monday, July 28th. US Capital Advisors analyst J. Carreker now anticipates that the company will earn $1.57 per share for the year, down from their prior forecast of $1.64. The consensus estimate for South Bow's current full-year earnings is $1.74 per share. US Capital Advisors also issued estimates for South Bow's FY2027 earnings at $1.90 EPS.

South Bow (NYSE:SOBO - Get Free Report) last released its quarterly earnings data on Thursday, May 15th. The company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.42 by $0.05. The company had revenue of $498.00 million during the quarter, compared to analyst estimates of $527.00 million. South Bow's revenue was down 8.5% on a year-over-year basis.

SOBO has been the subject of a number of other research reports. CIBC lifted their price target on South Bow from $25.00 to $26.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $38.00 price objective on shares of South Bow in a research report on Monday, May 19th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, one has assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $28.80.

South Bow Stock Performance

Shares of SOBO traded up $0.10 during midday trading on Wednesday, reaching $26.36. The stock had a trading volume of 428,660 shares, compared to its average volume of 565,670. The firm has a market cap of $5.49 billion and a PE ratio of 14.25. The firm has a 50 day simple moving average of $26.33 and a 200-day simple moving average of $25.44. South Bow has a one year low of $21.12 and a one year high of $27.60. The company has a current ratio of 1.29, a quick ratio of 1.20 and a debt-to-equity ratio of 2.20.

South Bow Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th were given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 7.6%. The ex-dividend date of this dividend was Monday, June 30th. South Bow's payout ratio is presently 108.11%.

Hedge Funds Weigh In On South Bow

Several institutional investors and hedge funds have recently modified their holdings of SOBO. Oppenheimer & Co. Inc. bought a new position in South Bow in the first quarter valued at approximately $1,351,000. Geode Capital Management LLC acquired a new position in shares of South Bow during the 4th quarter worth $4,803,000. Dimensional Fund Advisors LP acquired a new position in shares of South Bow during the 4th quarter worth $15,747,000. Norges Bank acquired a new stake in South Bow in the fourth quarter valued at about $20,486,000. Finally, Barclays PLC acquired a new stake in South Bow in the fourth quarter valued at about $1,059,000.

South Bow Company Profile

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.