Fortis (NYSE:FTS) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Fortis (NYSE:FTS) issued its earnings results on Tuesday. The utilities provider reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03, Zacks reports. The firm had revenue of $2.12 billion for the quarter, compared to analyst estimates of $2.27 billion. Fortis had a net margin of 14.66% and a return on equity of 7.46%.

Here are the key takeaways from Fortis’ conference call:

• Fortis raised its five-year capital plan to CAD 32.2 billion, CAD 3.4 billion above the prior outlook, supporting projected rate-base growth of 7.5% annually through 2031. The company said roughly 75% of spending targets transmission, distribution, and other lower-risk regulated infrastructure.
• Growth is being driven by major transmission and LNG opportunities, including ITC’s approximately US$1 billion MARS transmission project in Iowa and expanded investments at FortisBC’s Tilbury LNG site. Fortis also cited more than 10,000 megawatts of potential ITC load growth, although much of this remains outside the current plan.
• Fortis increased its quarterly dividend by 4% to CAD 0.665 and extended its 4%–6% annual dividend-growth guidance through 2031, marking 53 consecutive years of dividend increases.
• Third-quarter adjusted EPS increased by CAD 0.05 year over year to CAD 0.92, aided by rate-base growth at ITC, UNS Energy, and the Western Canadian utilities. TEP’s recommended rate-case outcome would modestly improve its allowed ROE and equity ratio, though final regulatory approval remains pending.
• The larger capital program will be funded primarily through operating cash flow, utility debt, the dividend reinvestment plan, hybrids, and selective ATM equity issuance; Fortis expects approximately CAD 250 million of ATM equity over the next 12 months. Management emphasized maintaining investment-grade ratings and a 50–75 basis-point buffer above credit-metric thresholds, while noting that additional growth projects could require further funding.

Fortis Trading Up 0.3%

FTS traded up $0.18 during trading on Thursday, reaching $61.11. 1,174,199 shares of the company’s stock were exchanged, compared to its average volume of 841,333. Fortis has a one year low of $49.99 and a one year high of $61.71. The company has a current ratio of 0.56, a quick ratio of 0.47 and a debt-to-equity ratio of 1.27. The stock has a market capitalization of $31.52 billion, a PE ratio of 24.02 and a beta of 0.42. The firm has a fifty day moving average price of $55.04 and a two-hundred day moving average price of $55.99.

Fortis Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, November 17th will be issued a dividend of C$0.67 per share. This represents a $2.66 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Tuesday, November 17th. This is a positive change from Fortis’s previous quarterly dividend of C$0.64. Fortis’s payout ratio is presently 73.23%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Wolfe Research set a $50.00 price target on Fortis in a research note on Tuesday, August 4th. TD Securities reissued a “buy” rating on shares of Fortis in a report on Tuesday, August 4th. Royal Bank Of Canada boosted their price objective on Fortis from $80.00 to $89.00 and gave the stock a “sector perform” rating in a research report on Monday, August 3rd. Scotiabank reaffirmed a “sector perform” rating on shares of Fortis in a report on Tuesday, August 4th. Finally, Canadian Imperial Bank of Commerce reiterated a “neutral” rating on shares of Fortis in a research report on Wednesday, October 28th. Three investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Fortis presently has an average rating of “Hold” and a consensus price target of $65.00.

Fortis Company Profile

Fortis Inc is a Canadian utility holding company that owns and operates regulated electric and natural gas utilities. Its businesses are primarily focused on the transmission and distribution of electricity, natural gas distribution, and related energy infrastructure.

Through its portfolio of utility subsidiaries, Fortis serves customers across Canada and the United States, with additional operations in the Caribbean. Its businesses include electric utilities, natural gas utilities, and electric transmission assets, providing essential energy services to residential, commercial, and industrial customers.

Fortis has expanded from its Canadian utility origins through acquisitions and investments in regulated infrastructure.