Fortis Inc (FTS:CA), a leading utility provider across North America, is set to release its Q4 2024 earnings report on February 14, 2025. As a key player in the regulated electric and gas utility sector, Fortis has demonstrated stable cash flows and consistent dividend payouts, making it a favored pick among defensive investors.
However, with concerns over valuation, capital efficiency, and regulatory challenges, analysts are closely watching whether Fortis can meet expectations this quarter.
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Expected Q4 Earnings Report of Fortis Inc:
Analysts project Fortis Inc to post an earnings per share (EPS) of CAD 0.55, with estimates ranging between CAD 0.52 and CAD 0.57. Revenue for the quarter is forecasted at approximately CAD 2.27 billion, reflecting moderate growth compared to previous quarters.
The company has consistently outperformed EPS estimates, having beaten expectations 100% of the time in the past 12 months. However, revenue surprises have been rare, with Fortis missing sales forecasts in the past four quarters.
Key areas to watch include:
- Regulatory updates: The impact of new policies on rate structures and earnings.
- Debt levels: Fortis remains highly leveraged, with a debt-to-equity ratio of 126.64%.
- Dividend Stability: Despite strong payouts, Fortis has underperformed in dividend growth (-28.59% over 5 years), a concerning trend for income investors.
Stock Target Advisor’s Analysis on Fortis Inc:
Stock Target Advisor provides a bearish rating for Fortis Inc, citing 11 negative signals and only 3 positive indicators.
Recent analyst ratings show a mixed sentiment toward Fortis, with most analysts maintaining a neutral or hold stance:
- J.P. Morgan Chase & Co: Sell – Target price: CAD 59
- CIBC World Markets: Neutral – Target price: CAD 64
- RBC: Hold – Target price: CAD 65
- Scotia Capital: Sector Perform – Target price: CAD 63
On average, 7 analysts covering Fortis have set a 12-month price target of CAD 62.21, with estimates ranging between CAD 59 and CAD 65.
Conclusion:
Investors remain cautiously optimistic as Fortis Inc. prepares for its Q4 2024 earnings report. While the company’s regulated utility operations provide stability, concerns over valuation, debt levels, and capital efficiency weigh on its outlook.
The earnings call is scheduled for February 14, 2025, at 8:30 AM Eastern Time, and will provide further clarity on Fortis Inc’s strategic direction.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
