South Bow (NYSE:SOBO) Announces Quarterly Earnings Results

South Bow (NYSE:SOBO) issued its quarterly earnings data on Thursday. The company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate 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 firm had revenue of $491.00 million during the quarter, compared to analyst estimates of $491.21 million. During the same period last year, the business earned $0.47 EPS. The firm’s revenue was up 1.0% compared to the same quarter last year.

South Bow Stock Down 1.1%

Shares of South Bow stock traded down $0.40 on Friday, hitting $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 market cap of $7.24 billion, a P/E 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. The firm’s 50-day moving average is $33.18 and its 200 day moving average is $29.53. South Bow has a 52-week low of $24.51 and a 52-week high of $35.56.

South Bow Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be paid 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 is 98.52%.

Trending Headlines about 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

Institutional investors and hedge funds have recently made changes to their positions in the business. Parkside Financial Bank & Trust boosted its holdings in South Bow by 10.0% in the fourth quarter. Parkside Financial Bank & Trust now owns 3,770 shares of the company’s stock worth $104,000 after purchasing an additional 344 shares during the period. Verition Fund Management LLC acquired a new position in South Bow in the third quarter worth $213,000. Brevan Howard Capital Management LP acquired a new position in South Bow in the third quarter worth $318,000. Entropy Technologies LP acquired a new position in South Bow in the third quarter worth $221,000. Finally, Osaic Holdings Inc. boosted its holdings in South Bow by 37.5% in the second quarter. Osaic Holdings Inc. now owns 4,856 shares of the company’s stock worth $126,000 after purchasing an additional 1,324 shares during the period.

Analysts Set New Price Targets

Several analysts have issued reports on SOBO shares. TD Securities reaffirmed a “hold” rating on shares of South Bow in a research report on Friday, May 1st. BMO Capital Markets reiterated a “market perform” rating on shares of South Bow in a research note on Monday, April 27th. Barclays increased their target price on South Bow from $27.00 to $33.00 and gave the company an “equal weight” rating in a research note on Monday, March 9th. Wolfe Research cut South Bow from a “peer perform” rating to an “underperform” rating and set a $24.00 target price for the company. in a research note on Wednesday, January 14th. Finally, National Bank Financial increased their target price on South Bow from $29.00 to $30.00 and gave the company a “sector perform” rating in a research note on Monday, March 16th. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus 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.