South Bow (NYSE:SOBO) Posts Earnings Results, Misses Expectations By $0.02 EPS

South Bow (NYSE:SOBO) announced its quarterly earnings results on Thursday. The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.02), Zacks reports. South Bow had a net margin of 21.32% and a return on equity of 15.24%. The company had revenue of $491.00 million for the quarter, compared to analysts’ expectations of $491.21 million. During the same period in the previous year, the business earned $0.47 EPS. The business’s revenue was up 1.0% compared to the same quarter last year.

South Bow Price Performance

NYSE:SOBO traded down $0.40 on Friday, reaching $34.72. 986,275 shares of the company’s stock traded hands, compared to its average volume of 1,031,318. The stock has a 50-day simple moving average of $33.18 and a 200-day simple moving average of $29.53. South Bow has a 12 month low of $24.51 and a 12 month high of $35.56. The firm has a market cap of $7.24 billion, a PE ratio of 17.10 and a beta of 0.11. The company has a quick ratio of 1.43, a current ratio of 1.50 and a debt-to-equity ratio of 2.13.

South Bow Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 5.8%. The ex-dividend date is Tuesday, June 30th. South Bow’s dividend payout ratio (DPR) is presently 98.52%.

South Bow News Summary

Here are the key news stories impacting South Bow this week:

• Positive Sentiment: South Bow declared a quarterly dividend of 0.50 per share, implying an annualized yield of about 5.7%, which should appeal to income-focused investors. Dividend declaration article
• Positive Sentiment: The company said it is beginning efforts to secure required permits for its Prairie Connector pipeline project, a step that could support longer-term growth if the cross-border project advances. Permitting article
• Neutral Sentiment: Shareholders approved all resolutions at South Bow’s annual general meeting, indicating normal governance progress without a major surprise. AGM resolutions article
• Neutral Sentiment: Investors also watched for valuation commentary following Q1 earnings and continued progress on pipeline-related opportunities, but these items appear secondary to the earnings report itself. Valuation commentary article
• Negative Sentiment: South Bow’s Q1 report missed analyst estimates on earnings and slightly missed revenue expectations, with year-over-year declines in earnings and net income weighing on sentiment. Q1 earnings miss article

Hedge Funds Weigh In On South Bow

Several hedge funds have recently modified their holdings of SOBO. Bank of America Corp DE increased its stake in South Bow by 5.0% in the 3rd quarter. Bank of America Corp DE now owns 2,352,405 shares of the company’s stock worth $66,550,000 after acquiring an additional 111,302 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of South Bow by 51.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,348,827 shares of the company’s stock valued at $64,541,000 after acquiring an additional 799,707 shares during the last quarter. Scotia Capital Inc. grew its holdings in shares of South Bow by 1.9% in the third quarter. Scotia Capital Inc. now owns 1,797,254 shares of the company’s stock valued at $50,385,000 after purchasing an additional 32,927 shares in the last quarter. Invesco Ltd. grew its holdings in shares of South Bow by 1.1% in the fourth quarter. Invesco Ltd. now owns 1,523,169 shares of the company’s stock valued at $41,841,000 after purchasing an additional 16,230 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its position in South Bow by 485.9% in the third quarter. Qube Research & Technologies Ltd now owns 784,565 shares of the company’s stock worth $22,195,000 after purchasing an additional 650,648 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Weiss Ratings upgraded South Bow from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, February 20th. National Bank Financial raised their target price on South Bow from $29.00 to $30.00 and gave the stock a “sector perform” rating in a research report on Monday, March 16th. Wolfe Research downgraded South Bow from a “peer perform” rating to an “underperform” rating and set a $24.00 price target for the company. in a research note on Wednesday, January 14th. Scotiabank upped their price target on shares of South Bow from $34.00 to $36.00 and gave the company a “sector perform” rating in a research report on Friday. Finally, BMO Capital Markets reiterated a “market perform” rating on shares of South Bow in a research note on Monday, April 27th. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $30.63.

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.