Desjardins Has Bullish Outlook for Hydro One Q3 Earnings

Key Points

• Desjardins has increased its Q3 2025 earnings per share estimate for Hydro One to $0.65 from a previous estimate of $0.63, maintaining a "Buy" rating and a target price of $58.00 on the stock.
• Hydro One has declared a quarterly dividend of $0.3331 per share, representing an annualized yield of 2.6% and a dividend payout ratio of 66.44%.
• As of the latest trading, Hydro One shares are priced at C$50.75, with a market capitalization of C$30.43 billion, reflecting a price-to-earnings ratio of 26.76.

Hydro One Limited (TSE:H - Free Report) - Equities research analysts at Desjardins raised their Q3 2025 earnings estimates for shares of Hydro One in a report issued on Wednesday, August 13th. Desjardins analyst B. Stadler now expects that the company will post earnings per share of $0.65 for the quarter, up from their prior estimate of $0.63. Desjardins currently has a "Buy" rating and a $58.00 target price on the stock. The consensus estimate for Hydro One's current full-year earnings is $2.06 per share. Desjardins also issued estimates for Hydro One's FY2025 earnings at $2.13 EPS, FY2026 earnings at $2.23 EPS and FY2027 earnings at $2.35 EPS.

A number of other brokerages have also recently issued reports on H. CIBC dropped their target price on Hydro One from C$52.00 to C$51.00 in a report on Monday, July 21st. BMO Capital Markets increased their price objective on Hydro One from C$46.00 to C$50.00 and gave the stock a "market perform" rating in a research note on Friday, May 9th. TD Securities lifted their price objective on Hydro One from C$52.00 to C$54.00 and gave the company a "hold" rating in a report on Thursday, August 14th. Wells Fargo & Company upped their target price on shares of Hydro One from C$47.00 to C$52.00 in a report on Friday, May 9th. Finally, Royal Bank Of Canada lifted their price target on shares of Hydro One from C$46.00 to C$53.00 in a report on Friday, May 9th. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of C$51.00.

Hydro One Price Performance

H traded up C$0.65 during midday trading on Friday, reaching C$51.24. 156,192 shares of the company's stock were exchanged, compared to its average volume of 996,312. The company has a quick ratio of 0.30, a current ratio of 0.58 and a debt-to-equity ratio of 140.53. The business has a 50-day simple moving average of C$49.27 and a two-hundred day simple moving average of C$48.89. The firm has a market capitalization of C$30.72 billion, a price-to-earnings ratio of 27.02, a price-to-earnings-growth ratio of 3.17 and a beta of 0.34. Hydro One has a one year low of C$42.52 and a one year high of C$53.98.

Hydro One Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Wednesday, September 10th will be paid a $0.3331 dividend. This represents a $1.33 dividend on an annualized basis and a yield of 2.6%. Hydro One's dividend payout ratio (DPR) is presently 66.44%.

About Hydro One

Hydro One operates regulated transmission and distribution assets in Ontario. The area's largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company's rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business, Acronym Solutions, with annual revenue contributing less than 1% to consolidated results.