Scotiabank Has Negative Outlook for Fortis FY2027 Earnings

Key Points

• Scotiabank cut its FY2027 EPS forecast for Fortis to C$3.80 from C$3.83, though the revised estimate remains above the broader consensus of C$3.34.
• Analyst sentiment remains generally positive, with Fortis holding a “Moderate Buy” consensus rating and an average price target of C$79.23; recent target changes have been mixed.
• Fortis recently reported quarterly EPS of C$0.78 on C$2.93 billion in revenue and pays a quarterly dividend of $0.64, representing a 3.4% yield and a 74.56% payout ratio.

Fortis Inc. (TSE:FTS - Free Report) - Stock analysts at Scotiabank dropped their FY2027 EPS estimates for Fortis in a research note issued on Thursday, October 1st. Scotiabank analyst R. Hope now forecasts that the company will post earnings of $3.80 per share for the year, down from their prior estimate of $3.83. The consensus estimate for Fortis' current full-year earnings is $3.34 per share.

A number of other research analysts have also issued reports on FTS. Desjardins raised their price objective on shares of Fortis from C$81.00 to C$85.00 and gave the company a "buy" rating in a report on Monday, July 20th. Canadian Imperial Bank of Commerce reduced their price objective on shares of Fortis from C$82.00 to C$78.00 in a research note on Tuesday, September 22nd. Finally, Barclays decreased their price objective on Fortis from C$82.00 to C$76.00 and set an "overweight" rating for the company in a report on Wednesday. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, Fortis currently has a consensus rating of "Moderate Buy" and a consensus price target of C$79.23.

Fortis Price Performance

Fortis stock opened at C$75.07 on Friday. The stock has a 50-day moving average price of C$77.22 and a two-hundred day moving average price of C$78.17. Fortis has a 12 month low of C$69.06 and a 12 month high of C$83.75. The company has a market capitalization of C$38.35 billion, a PE ratio of 22.08, a P/E/G ratio of 3.01 and a beta of 0.34. The company has a current ratio of 0.56, a quick ratio of 0.36 and a debt-to-equity ratio of 143.60.

Fortis (TSE:FTS - Get Free Report) last released its quarterly earnings data on Friday, July 31st. The company reported C$0.78 earnings per share for the quarter. Fortis had a return on equity of 7.43% and a net margin of 14.72%.The company had revenue of C$2.93 billion for the quarter.

Fortis Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Tuesday, September 1st were paid a dividend of $0.64 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $2.56 annualized dividend and a yield of 3.4%. Fortis's dividend payout ratio is currently 74.56%.

Fortis Company Profile

Fortis owns and operates 10 utility transmission and distribution assets in Canada and the United States, serving more than 3.4 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. ITC operates electric transmission in seven U.S. states, with more than 16,000 miles of high-voltage transmission lines in operation serving a peak load in excess of 23 gigawatts.

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