Canada's Fortis Q3 profit beats estimates on rate base growth; raises dividend

Fortis

Tue 11:15

Overview
Canada regulated utility's Q3 adjusted EPS and adjusted net income beat analyst expectations
Company increased quarterly dividend by 4% and extended annual dividend growth guidance
Released C$32.2 bln five-year capital plan, up C$3.4 bln, supporting 7.5% rate base growth

Outlook
Fortis expects 2026 capital expenditures of C$6.0 bln, up from C$5.6 bln previously anticipated
Company unveils C$32.2 bln capital plan for 2027-2031, supporting 7.5% five-year rate base growth
Fortis extends annual dividend growth guidance of 4-6% through 2031

Result Drivers
RATE BASE GROWTH - Co said higher Q3 net earnings were mainly driven by growth in rate base across its utilities
UNS ENERGY PERFORMANCE - Higher earnings at UNS Energy reflected growth in retail electricity sales and timing of operating costs
DISPOSITIONS IMPACT - Dispositions of FortisTCI and Fortis Belize and higher holding company finance costs unfavourably impacted earnings growth

Company press release: ID:nGNXbqlCs0

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
C$0.92
C$0.88 (12 Analysts)
Q3 EPS
 
C$0.92
 
Q3 Net Income attributable
Beat
C$474 mln
C$462 mln (4 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Fortis Inc. is C$84.00, about 1.3% above its November 2 closing price of C$82.95
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Nov 2 - Canada's Capital Power Q3 revenue falls on derivative losses
Nov 2 - Canada's Gibson Energy Q3 adjusted EBITDA beats estimates, hits record
Nov 2 - Entergy Q3 profit beats estimates on retail sales; raises dividend

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)