Scotiabank Research Analysts Cut Earnings Estimates for BCE

Key Points

• Scotiabank lowered BCE’s FY2026 earnings estimate to $1.83 per share from $1.87, below the $1.89 consensus forecast, while maintaining an “Outperform” rating. The firm forecasts FY2027 EPS of $1.86.
• BCE’s latest quarterly results slightly exceeded expectations, with EPS of $0.47 versus the $0.46 consensus and revenue of $4.35 billion in line with estimates. The company’s FY2026 guidance is $1.798–$1.919 in EPS.
• BCE shares rose 4.0% to $20.79, while the company maintained an attractive dividend profile with an annualized C$1.75 payout and an approximately 8.4% yield. Analysts overall assign the stock a “Moderate Buy” consensus rating with a $29 average price target.

BCE, Inc. (NYSE:BCE - Free Report) TSE: BCE - Equities research analysts at Scotiabank lowered their FY2026 earnings estimates for shares of BCE in a report released on Thursday, October 22nd. Scotiabank analyst M. Yaghi now forecasts that the utilities provider will post earnings of $1.83 per share for the year, down from their prior estimate of $1.87. Scotiabank currently has an "Outperform" rating on the stock. The consensus estimate for BCE's current full-year earnings is $1.89 per share. Scotiabank also issued estimates for BCE's FY2027 earnings at $1.86 EPS.

BCE (NYSE:BCE - Get Free Report) TSE: BCE last released its earnings results on Thursday, August 6th. The utilities provider reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.01. The firm had revenue of $4.35 billion for the quarter, compared to the consensus estimate of $4.35 billion. BCE had a net margin of 25.49% and a return on equity of 12.90%. BCE has set its FY 2026 guidance at 1.798-1.919 EPS.

A number of other brokerages also recently weighed in on BCE. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of BCE in a report on Thursday, October 8th. Raymond James Financial started coverage on BCE in a research note on Wednesday, July 15th. They issued a "market perform" rating on the stock. Canaccord Genuity Group raised BCE from a "hold" rating to a "buy" rating in a research report on Tuesday, October 13th. TD Securities reiterated a "buy" rating on shares of BCE in a research note on Tuesday, September 15th. Finally, Bank of America raised BCE from an "underperform" rating to a "buy" rating and boosted their target price for the stock from $24.50 to $27.00 in a report on Tuesday, August 11th. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $29.00.

BCE Trading Up 4.0%

NYSE:BCE opened at $20.79 on Friday. The firm has a market capitalization of $19.38 billion, a P/E ratio of 10.04, a PEG ratio of 6.02 and a beta of 0.54. The company has a debt-to-equity ratio of 1.79, a current ratio of 0.73 and a quick ratio of 0.69. BCE has a one year low of $18.68 and a one year high of $26.52. The company's 50-day simple moving average is $21.86 and its 200 day simple moving average is $22.75.

BCE Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th were paid a dividend of C$0.44 per share. This represents a $1.75 dividend on an annualized basis and a yield of 8.4%. The ex-dividend date was Tuesday, September 15th. BCE's dividend payout ratio (DPR) is currently 25.77%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in BCE. Cullen Capital Management LLC bought a new stake in shares of BCE during the second quarter valued at approximately $107,023,000. The Manufacturers Life Insurance Company lifted its position in BCE by 21.7% in the 1st quarter. The Manufacturers Life Insurance Company now owns 5,038,362 shares of the utilities provider's stock valued at $127,011,000 after acquiring an additional 897,141 shares in the last quarter. Allianz Asset Management GmbH lifted its position in BCE by 3,721.3% in the 2nd quarter. Allianz Asset Management GmbH now owns 782,149 shares of the utilities provider's stock valued at $16,842,000 after acquiring an additional 761,681 shares in the last quarter. Ninepoint Partners LP bought a new position in BCE in the 2nd quarter valued at approximately $14,523,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in BCE during the 2nd quarter valued at $10,698,000. Institutional investors own 41.46% of the company's stock.

About BCE

BCE Inc is a Canadian communications and media company headquartered in Montréal, Québec. Through its Bell Canada operations, the company provides wireless and wireline telecommunications services, including mobile voice and data, high-speed internet, local and long-distance voice, and digital television. Bell serves residential, small-business, enterprise and government customers across Canada.

BCE also operates a media business through Bell Media, which includes television networks, digital platforms, radio stations and related content operations.

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