Zacks Research Issues Negative Outlook for Southern Earnings

The Southern Company (NYSE:SO) – Analysts at Zacks Research reduced their Q1 2026 earnings estimates for Southern in a research note issued to investors on Wednesday, November 20th. Zacks Research analyst T. Saha now expects that the utilities provider will earn $1.00 per share for the quarter, down from their prior estimate of $1.01. The consensus estimate for Southern’s current full-year earnings is $4.04 per share. Zacks Research also issued estimates for Southern’s Q3 2026 earnings at $1.21 EPS and FY2026 earnings at $4.44 EPS.

Southern (NYSE:SO) last issued its quarterly earnings results on Thursday, October 31st. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.10. Southern had a return on equity of 12.78% and a net margin of 17.87%. The firm had revenue of $7.27 billion for the quarter, compared to analysts’ expectations of $7.14 billion. During the same quarter in the previous year, the firm posted $1.42 EPS. The firm’s revenue for the quarter was up 4.2% on a year-over-year basis.

Several other brokerages have also recently issued reports on SO. Scotiabank boosted their price objective on shares of Southern from $87.00 to $96.00 and gave the company a “sector outperform” rating in a research note on Tuesday, August 20th. Barclays increased their price target on shares of Southern from $71.00 to $83.00 and gave the stock an “equal weight” rating in a report on Tuesday, October 15th. Guggenheim lifted their price objective on Southern from $93.00 to $97.00 and gave the company a “buy” rating in a report on Wednesday, October 2nd. Jefferies Financial Group started coverage on Southern in a research note on Friday, September 20th. They set a “hold” rating and a $94.00 target price for the company. Finally, BMO Capital Markets decreased their price target on Southern from $99.00 to $97.00 and set an “outperform” rating on the stock in a research note on Friday, November 1st. One analyst has rated the stock with a sell rating, eight have issued a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $89.47.

Southern Price Performance

Southern stock opened at $87.60 on Friday. 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 business has a 50 day simple moving average of $89.73 and a 200-day simple moving average of $84.68. Southern has a 12 month low of $65.80 and a 12 month high of $94.45. The stock has a market capitalization of $95.98 billion, a PE ratio of 20.37, a price-to-earnings-growth ratio of 3.21 and a beta of 0.52.

Southern Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Monday, November 18th will be given a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a yield of 3.29%. The ex-dividend date is Monday, November 18th. Southern’s payout ratio is currently 66.98%.

Insider Buying and Selling at Southern

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

Hedge Funds Weigh In On Southern

A number of institutional investors have recently modified their holdings of the company. Frazier Financial Advisors LLC increased its position in Southern by 168.1% during the third quarter. Frazier Financial Advisors LLC now owns 311 shares of the utilities provider’s stock worth $28,000 after purchasing an additional 195 shares during the last quarter. TruNorth Capital Management LLC acquired a new stake in shares of Southern during the 2nd quarter worth $39,000. Versant Capital Management Inc raised its position in shares of Southern by 31.8% in the 2nd quarter. Versant Capital Management Inc now owns 585 shares of the utilities provider’s stock worth $45,000 after buying an additional 141 shares during the period. West Branch Capital LLC boosted its holdings in Southern by 34.7% in the third quarter. West Branch Capital LLC now owns 501 shares of the utilities provider’s stock valued at $45,000 after acquiring an additional 129 shares during the last quarter. Finally, Safe Harbor Fiduciary LLC purchased a new stake in Southern during the third quarter valued at about $49,000. Institutional investors and hedge funds own 64.10% of the company’s stock.

Southern Company Profile

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.