Desjardins Has Optimistic Outlook of Hydro One Q2 Earnings

Key Points

• Desjardins has raised its Q2 2025 earnings per share (EPS) estimate for Hydro One to $0.53, up from $0.49, maintaining a "Buy" rating with a price target of $58.00.
• The company announced a quarterly dividend of $0.3331, an increase from the previous dividend of $0.31, representing an annualized yield of 2.6%.
• Hydro One's shares have a current market capitalization of C$30.24 billion and have shown a one-year price range between C$42.52 and C$53.98.

Hydro One Limited (TSE:H - Free Report) - Desjardins increased their Q2 2025 earnings per share (EPS) estimates for Hydro One in a report released on Monday, August 11th. Desjardins analyst B. Stadler now anticipates that the company will post earnings of $0.53 per share for the quarter, up from their previous forecast of $0.49. Desjardins currently has a "Buy" rating and a $58.00 price target 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 Q3 2025 earnings at $0.63 EPS, Q4 2025 earnings at $0.34 EPS and FY2025 earnings at $2.10 EPS.

A number of other brokerages have also commented on H. Wells Fargo & Company upped their target price on Hydro One from C$47.00 to C$52.00 in a research report on Friday, May 9th. National Bankshares upped their price objective on Hydro One from C$47.00 to C$48.00 and gave the stock a "sector perform" rating in a research report on Thursday. Raymond James Financial increased their target price on Hydro One from C$48.00 to C$49.00 and gave the company a "market perform" rating in a research report on Thursday. TD Securities increased their target price on Hydro One from C$52.00 to C$54.00 and gave the company a "hold" rating in a research report on Thursday. Finally, Royal Bank Of Canada increased their target price on Hydro One from C$46.00 to C$53.00 in a research report on Friday, May 9th. Eight investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of C$51.00.

Hydro One Stock Up 0.2%

Hydro One stock traded up C$0.12 during trading hours on Wednesday, reaching C$50.87. The stock had a trading volume of 957,566 shares, compared to its average volume of 1,004,901. Hydro One has a 52 week low of C$42.52 and a 52 week high of C$53.98. The company has a debt-to-equity ratio of 140.53, a current ratio of 0.58 and a quick ratio of 0.30. The company has a market cap of C$30.50 billion, a price-to-earnings ratio of 26.82, a PEG ratio of 3.17 and a beta of 0.34. The business's 50 day moving average price is C$49.20 and its 200-day moving average price is C$48.78.

Hydro One Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Wednesday, September 10th will be given a dividend of $0.3331 per share. This represents a $1.33 annualized dividend and a yield of 2.6%. Hydro One's dividend payout ratio (DPR) is 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.