Zacks Research Increases Earnings Estimates for Southern

Key Points

• Zacks Research has increased their FY2025 earnings per share (EPS) estimate for Southern Company to $4.22, slightly up from the previous estimate of $4.21.
• Southern Company reported a Q2 earnings miss with an EPS of $0.91, below analyst expectations of $0.99, despite achieving a revenue of $6.97 billion.
• The company also declared a quarterly dividend of $0.74, reflecting an annualized yield of 3.0% and a payout ratio of 76.09%.

Southern Company (The) (NYSE:SO - Free Report) - Research analysts at Zacks Research raised their FY2025 earnings per share (EPS) estimates for shares of Southern in a note issued to investors on Monday, October 13th. Zacks Research analyst Team now anticipates that the utilities provider will earn $4.22 per share for the year, up from their previous forecast of $4.21. The consensus estimate for Southern's current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Southern's Q1 2027 earnings at $1.29 EPS and FY2027 earnings at $4.88 EPS.

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

Several other brokerages also recently weighed in on SO. Mizuho upped their target price on shares of Southern from $93.00 to $95.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Weiss Ratings reiterated a "buy (b)" rating on shares of Southern in a research note on Wednesday, October 8th. Scotiabank reiterated a "sector perform" rating and issued a $99.00 target price on shares of Southern in a report on Friday, October 3rd. BMO Capital Markets increased their price target on Southern from $98.00 to $102.00 and gave the company an "outperform" rating in a research report on Tuesday, July 22nd. Finally, UBS Group upped their target price on shares of Southern from $100.00 to $104.00 and gave the stock a "neutral" rating in a research note on Friday. Four research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $96.85.

Southern Stock Performance

NYSE SO opened at $99.80 on Wednesday. The company has a market cap of $109.78 billion, a P/E ratio of 25.65, a P/E/G ratio of 3.39 and a beta of 0.43. Southern has a 1-year low of $80.46 and a 1-year high of $99.81. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.74 and a quick ratio of 0.54. The stock has a 50-day moving average of $93.77 and a two-hundred day moving average of $91.85.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Avidian Wealth Enterprises LLC boosted its stake in Southern by 2.3% during the 2nd quarter. Avidian Wealth Enterprises LLC now owns 4,697 shares of the utilities provider's stock worth $431,000 after purchasing an additional 106 shares during the period. Highline Wealth Partners LLC raised its stake in Southern by 0.7% during the 3rd quarter. Highline Wealth Partners LLC now owns 15,667 shares of the utilities provider's stock valued at $1,485,000 after acquiring an additional 106 shares during the last quarter. Sara Bay Financial grew its stake in shares of Southern by 2.7% in the 3rd quarter. Sara Bay Financial now owns 4,133 shares of the utilities provider's stock valued at $392,000 after purchasing an additional 108 shares during the last quarter. Keudell Morrison Wealth Management grew its stake in shares of Southern by 1.1% in the 1st quarter. Keudell Morrison Wealth Management now owns 10,032 shares of the utilities provider's stock valued at $922,000 after purchasing an additional 110 shares during the last quarter. Finally, Delta Investment Management LLC lifted its holdings in shares of Southern by 4.6% during the second quarter. Delta Investment Management LLC now owns 2,579 shares of the utilities provider's stock worth $237,000 after purchasing an additional 113 shares during the period. Institutional investors and hedge funds own 64.10% of the company's stock.

Insider Transactions at Southern

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 stock was sold at an average price of $95.00, for a total transaction of $1,250,010.00. Following the transaction, the chief executive officer owned 93,661 shares of the company's stock, valued at approximately $8,897,795. This trade represents a 12.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.16% of the stock is owned by corporate insiders.

Southern Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 18th were given a $0.74 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $2.96 dividend on an annualized basis and a yield of 3.0%. Southern's payout ratio is 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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