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) - Equities researchers at Desjardins lifted their Q2 2025 earnings per share estimates for shares of Hydro One in a report released on Monday, August 11th. Desjardins analyst B. Stadler now forecasts 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 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 Q3 2025 earnings at $0.63 EPS, Q4 2025 earnings at $0.34 EPS and FY2025 earnings at $2.10 EPS.

Several other research analysts have also recently weighed in on the company. Wells Fargo & Company lifted their price target on Hydro One from C$47.00 to C$52.00 in a research report on Friday, May 9th. Royal Bank Of Canada lifted their price target on Hydro One from C$46.00 to C$53.00 in a research note on Friday, May 9th. National Bankshares boosted 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 note on Thursday. CIBC lowered their price objective on Hydro One from C$52.00 to C$51.00 in a research note on Monday, July 21st. Finally, BMO Capital Markets upped their price target on Hydro One from C$46.00 to C$50.00 and gave the company a "market perform" rating in a research note on Friday, May 9th. Eight analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to MarketBeat, Hydro One presently has a consensus rating of "Hold" and an average price target of C$51.00.

Hydro One Trading Up 0.2%

TSE:H traded up C$0.12 during midday trading on Wednesday, hitting C$50.87. 957,566 shares of the company traded hands, compared to its average volume of 1,004,901. The company has a current ratio of 0.58, a quick ratio of 0.30 and a debt-to-equity ratio of 140.53. The firm's fifty day moving average is C$49.20 and its 200-day moving average is C$48.81. Hydro One has a 12-month low of C$42.52 and a 12-month high of C$53.98. The firm has a market capitalization of C$30.50 billion, a P/E ratio of 26.82, a P/E/G ratio of 3.17 and a beta of 0.34.

Hydro One Announces Dividend

The company also recently disclosed 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 is currently 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.