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

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

South Bow Price Performance

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

South Bow Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date of this dividend is Tuesday, June 30th. South Bow’s dividend payout ratio is currently 98.52%.

Key Stories Impacting South Bow

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

Large investors have recently made changes to their positions in the business. IFP Advisors Inc boosted its holdings in South Bow by 780.3% during the third quarter. IFP Advisors Inc now owns 1,206 shares of the company’s stock worth $34,000 after buying an additional 1,069 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of South Bow by 1,993.8% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,340 shares of the company’s stock valued at $35,000 after acquiring an additional 1,276 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of South Bow during the 4th quarter worth $61,000. Advisory Services Network LLC bought a new stake in shares of South Bow during the 3rd quarter worth $66,000. Finally, Quadrant Capital Group LLC acquired a new position in shares of South Bow in the 3rd quarter worth $87,000.

Analysts Set New Price Targets

SOBO has been the subject of several research reports. Barclays lifted their target price on South Bow from $27.00 to $33.00 and gave the stock an “equal weight” rating in a research report on Monday, March 9th. Wolfe Research downgraded South Bow from a “peer perform” rating to an “underperform” rating and set a $24.00 price target on the stock. in a report on Wednesday, January 14th. BMO Capital Markets reissued a “market perform” rating on shares of South Bow in a report on Monday, April 27th. Scotiabank raised their price target on South Bow from $34.00 to $36.00 and gave the stock a “sector perform” rating in a report on Friday. Finally, Wall Street Zen downgraded South Bow from a “hold” rating to a “sell” rating in a report on Saturday. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $30.63.

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.