Fortis Inc's Q2 profit rises on rate base growth
FTS•Key earnings drivers and analyst view
- Rate base growth - Expansion of rate base across its utilities contributed to Q2 earnings growth.
- Higher retail electricity sales - Increased retail electricity sales at UNS Energy supported earnings growth.
- Cost pressures - Higher costs from rate base growth not yet reflected in customer rates and timing of operating costs at UNS Energy partially offset earnings growth.
| Metric | Actual |
|---|---|
| Q2 EPS | C$0.78 |
| Q2 Net Earnings | C$396 million |
The current average analyst rating on the shares is "hold," with 5 "strong buy" or "buy," 9 "hold" and 3 "sell" or "strong sell" recommendations. 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$82.00, about 1.8% above its July 30 closing price of C$80.55. The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago.
Outlook remains tied to capital spending and dividend growth
Fortis expects its C$28.8 billion five-year capital plan to raise rate base to C$57.9 billion by 2030.
The company maintained annual dividend growth guidance of 4% to 6% through 2030, and said it sees additional growth from U.S. grid expansion and renewable gas investments.
