US Capital Advisors Expects Weaker Earnings for South Bow

South Bow Corporation (NYSE:SOBO) – Research analysts at US Capital Advisors lowered their Q1 2026 earnings estimates for shares of South Bow in a report released on Monday, March 23rd. US Capital Advisors analyst J. Carreker now forecasts that the company will post earnings per share of $0.38 for the quarter, down from their prior estimate of $0.41. The consensus estimate for South Bow’s current full-year earnings is $1.74 per share. US Capital Advisors also issued estimates for South Bow’s Q2 2026 earnings at $0.40 EPS, Q3 2026 earnings at $0.41 EPS, Q4 2026 earnings at $0.43 EPS, FY2026 earnings at $1.62 EPS, Q1 2027 earnings at $0.45 EPS, Q2 2027 earnings at $0.46 EPS and FY2028 earnings at $1.98 EPS.

A number of other analysts have also issued reports on the company. Scotiabank lifted their target price on South Bow from $30.00 to $34.00 and gave the stock a “sector perform” rating in a research report on Friday, March 6th. Wolfe Research lowered South Bow from a “peer perform” rating to an “underperform” rating and set a $24.00 price objective for the company. in a research note on Wednesday, January 14th. UBS Group assumed coverage on South Bow in a report on Thursday, December 11th. They set a “neutral” rating on the stock. Morgan Stanley reaffirmed an “underweight” rating on shares of South Bow in a research report on Tuesday, December 2nd. Finally, Barclays lifted their price target on shares of South Bow from $27.00 to $33.00 and gave the stock an “equal weight” rating in a research note on Monday, March 9th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, South Bow presently has a consensus rating of “Hold” and a consensus price target of $30.57.

South Bow Stock Performance

Shares of SOBO stock opened at $33.78 on Tuesday. The company has a debt-to-equity ratio of 2.13, a current ratio of 1.50 and a quick ratio of 1.43. The company’s fifty day moving average price is $30.39 and its two-hundred day moving average price is $28.39. The firm has a market capitalization of $7.04 billion, a P/E ratio of 16.24 and a beta of 0.29. South Bow has a 12 month low of $21.16 and a 12 month high of $34.24.

South Bow (NYSE:SOBO) last released its quarterly earnings data on Thursday, March 5th. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.40 by $0.21. The company had revenue of $503.00 million for the quarter, compared to analyst estimates of $500.57 million. South Bow had a return on equity of 15.55% and a net margin of 21.80%.The firm’s revenue was up 3.1% compared to the same quarter last year. During the same period last year, the company posted $0.54 earnings per share.

Hedge Funds Weigh In On South Bow

Several hedge funds and other institutional investors have recently made changes to their positions in SOBO. Norges Bank purchased a new position in South Bow during the second quarter valued at approximately $26,248,000. Thornburg Investment Management Inc. lifted its position in South Bow by 114.5% in the 2nd quarter. Thornburg Investment Management Inc. now owns 1,656,020 shares of the company’s stock worth $43,047,000 after buying an additional 883,918 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in South Bow by 51.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,348,827 shares of the company’s stock worth $64,541,000 after buying an additional 799,707 shares in the last quarter. American Century Companies Inc. boosted its stake in shares of South Bow by 467.7% during the 3rd quarter. American Century Companies Inc. now owns 959,031 shares of the company’s stock valued at $27,137,000 after buying an additional 790,111 shares during the period. Finally, Qube Research & Technologies Ltd grew its holdings in shares of South Bow by 485.9% during the 3rd quarter. Qube Research & Technologies Ltd now owns 784,565 shares of the company’s stock valued at $22,195,000 after acquiring an additional 650,648 shares in the last quarter.

South Bow Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a $0.50 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $2.00 annualized dividend and a dividend yield of 5.9%. South Bow’s dividend payout ratio (DPR) is presently 96.15%.

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.