Zacks Research Reduces Earnings Estimates for Southern

The Southern Company (NYSE:SO) – Investment analysts at Zacks Research decreased their FY2024 EPS estimates for Southern in a report issued on Wednesday, November 20th. Zacks Research analyst T. Saha now anticipates that the utilities provider will post earnings of $3.97 per share for the year, down from their previous forecast of $3.99. The consensus estimate for Southern’s current full-year earnings is $4.03 per share. Zacks Research also issued estimates for Southern’s Q4 2024 earnings at $0.46 EPS, Q1 2025 earnings at $1.03 EPS, Q2 2025 earnings at $1.01 EPS, Q3 2025 earnings at $1.23 EPS, Q4 2025 earnings at $0.87 EPS, FY2025 earnings at $4.15 EPS and Q2 2026 earnings at $1.09 EPS.

Southern (NYSE:SO) last posted its earnings results on Thursday, October 31st. The utilities provider reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.10. The business had revenue of $7.27 billion during the quarter, compared to analyst estimates of $7.14 billion. Southern had a return on equity of 12.78% and a net margin of 17.87%. The company’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.42 EPS.

A number of other analysts also recently weighed in on the stock. Morgan Stanley reduced their target price on shares of Southern from $88.00 to $85.00 and set an “equal weight” rating on the stock in a report on Friday, November 22nd. UBS Group lifted their target price on Southern from $90.00 to $91.00 and gave the stock a “neutral” rating in a report on Friday, September 20th. JPMorgan Chase & Co. raised their price target on Southern from $80.00 to $87.00 and gave the stock an “underweight” rating in a research report on Monday, August 12th. BMO Capital Markets lowered their target price on shares of Southern from $99.00 to $97.00 and set an “outperform” rating for the company in a report on Friday, November 1st. Finally, Barclays raised their price objective on shares of Southern from $71.00 to $83.00 and gave the stock an “equal weight” rating in a research note on Tuesday, October 15th. One analyst has rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $89.47.

Southern Price Performance

Shares of NYSE:SO opened at $89.33 on Monday. The firm’s 50 day simple moving average is $89.70 and its two-hundred day simple moving average is $84.94. The company has a debt-to-equity ratio of 1.66, a current ratio of 0.91 and a quick ratio of 0.66. The company has a market capitalization of $97.88 billion, a P/E ratio of 20.77, a P/E/G ratio of 3.20 and a beta of 0.52. Southern has a 1-year low of $65.80 and a 1-year high of $94.45.

Southern Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Monday, November 18th will be paid a dividend of $0.72 per share. The ex-dividend date is Monday, November 18th. This represents a $2.88 annualized dividend and a yield of 3.22%. Southern’s payout ratio is 66.98%.

Insider Activity

In related news, CEO James Y. Kerr II sold 30,000 shares of the stock in a transaction on Friday, October 4th. The shares were sold at an average price of $89.64, for a total value of $2,689,200.00. Following the transaction, the chief executive officer now directly owns 145,088 shares of the company’s stock, valued at $13,005,688.32. This trade represents a 17.13 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Bryan D. Anderson sold 6,565 shares of the business’s stock in a transaction dated Friday, September 6th. The shares were sold at an average price of $89.54, for a total value of $587,830.10. Following the completion of the sale, the executive vice president now directly owns 44,467 shares of the company’s stock, valued at $3,981,575.18. The trade was a 12.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On Southern

A number of institutional investors and hedge funds have recently made changes to their positions in SO. Peapack Gladstone Financial Corp lifted its stake in shares of Southern by 4.2% during the 3rd quarter. Peapack Gladstone Financial Corp now owns 39,087 shares of the utilities provider’s stock worth $3,526,000 after purchasing an additional 1,568 shares during the period. Synovus Financial Corp raised its position in Southern by 72.4% in the third quarter. Synovus Financial Corp now owns 3,077,959 shares of the utilities provider’s stock valued at $277,570,000 after purchasing an additional 1,293,072 shares during the period. Tidal Investments LLC grew its stake in shares of Southern by 60.7% in the third quarter. Tidal Investments LLC now owns 23,813 shares of the utilities provider’s stock valued at $2,147,000 after buying an additional 8,996 shares in the last quarter. Destination Wealth Management purchased a new position in Southern in the 3rd quarter worth approximately $478,000. Finally, Wilmington Savings Fund Society FSB purchased a new stake in shares of Southern during the third quarter worth about $2,361,000. 64.10% of the stock is owned by institutional investors and hedge funds.

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.