Fortis (NYSE:FTS) Issues Quarterly Earnings Results

Fortis (NYSE:FTS) issued its quarterly earnings results on Tuesday. The utilities provider reported $0.66 EPS for the quarter, topping the consensus estimate of $0.63 by $0.03, Zacks reports. Fortis had a return on equity of 7.16% and a net margin of 14.17%. The company had revenue of $2.12 billion for the quarter, compared to the consensus estimate of $2.27 billion.

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 Price Performance

NYSE FTS traded up $1.07 during trading on Wednesday, reaching $60.79. 437,696 shares of the company traded hands, compared to its average volume of 835,935. Fortis has a 1-year low of $49.99 and a 1-year high of $60.86. The company has a market cap of $31.36 billion, a price-to-earnings ratio of 24.59 and a beta of 0.42. The stock’s 50 day moving average price is $54.92 and its two-hundred day moving average price is $55.94. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.47 and a current ratio of 0.56.

Fortis Increases Dividend

The business also recently disclosed 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. 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. This represents a $2.66 dividend on an annualized basis and a yield of 4.4%. Fortis’s dividend payout ratio (DPR) is presently 73.68%.

Key Stories Impacting Fortis

Here are the key news stories impacting Fortis this week:

• Positive Sentiment: Fortis earned $0.66 per share, above the $0.63 consensus and up from $0.59 a year earlier. Fortis Q3 earnings
• Positive Sentiment: The company announced a 3.9% increase in its quarterly dividend to C$0.67 per share, payable December 1 to shareholders of record November 17. The increase may appeal to income-focused investors. Fortis Q3 results and dividend announcement
• Positive Sentiment: Fortis highlighted record growth investment on its earnings call and released a new five-year capital outlook, signaling continued investment plans. Fortis earnings call highlights
• Negative Sentiment: Quarterly revenue was $2.12 billion, below analyst expectations of $2.27 billion, tempering the earnings beat. Fortis Q3 results

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Barclays lowered their price objective on shares of Fortis from $60.00 to $56.00 and set an “overweight” rating on the stock in a research note on Tuesday, September 29th. TD Securities reissued a “buy” rating on shares of Fortis in a report on Tuesday, August 4th. Wolfe Research set a $50.00 price target on shares of Fortis in a research report on Tuesday, August 4th. Scotiabank reiterated a “sector perform” rating on shares of Fortis in a research note on Tuesday, August 4th. Finally, BMO Capital Markets restated a “market perform” rating on shares of Fortis in a research note on Monday, August 3rd. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price 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.