Canada's Hydro One Q3 revenue rises, EPS edges down

Hydro One

Tue 12:08

Overview
Canadian electricity utility's Q3 revenue rose yr/yr on higher rates and peak demand
Q3 basic EPS edged down to C$0.69 from C$0.70 as costs increased
Company made C$1.08 bln in capital investments during the quarter

Outlook
Hydro One proposes C$37 bln investment plan for 2028-2032 transmission and distribution systems
Company expects investments to strengthen grid and meet rising electricity demand in Ontario
Hydro One expects North Shore Link transmission line to be in service in 2029

Result Drivers
HIGHER COSTS - Co said increased OM&A, depreciation, and interest costs weighed on Q3 earnings
STORM RESTORATION - Higher asset removal costs were attributed to increased storm restoration activities

Company press release: ID:nPn7zhQgma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$2.49 bln
C$1.28 bln (2 Analysts)
Q3 EPS
 
C$0.68
 
Q3 Net Income
 
C$413 mln
 
Q3 Basic EPS
 
C$0.69
 
Q3 Dividend
 
C$0.35
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 3 "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 Hydro One Limited is C$57.50, about 0.7% above its November 9 closing price of C$57.09
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads
Nov 10 - Canada's Keyera swings to Q3 net loss, adjusted EBITDA rises on acquisitions
Nov 9 - Canada's Strathcona Resources Q3 production rises sequentially, raises quarterly dividend
Nov 9 - Clearway Energy Q3 net income rises on growth investments, mark-to-market gains

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.)