Fortis (NYSE:FTS) Sets New 1-Year High After Better-Than-Expected Earnings

Key Points

• Fortis reached a new 52-week high of $50.55 during trading, boosting its stock from a previous close of $48.97, with a trading volume of 151,712 shares.
• Analysts have influenced Fortis' stock outlook, with upgrades from Royal Bank Of Canada (price target raised to $72.00) and CIBC, while the consensus rating remains a "Hold."
• The company's latest earnings report showed an EPS of $0.70, beating expectations, but revenue of $2.31 billion fell short of analysts’ estimates of $3.42 billion.

Fortis (NYSE:FTS - Get Free Report)'s stock price reached a new 52-week high on Friday following a better than expected earnings announcement. The stock traded as high as $50.55 and last traded at $50.42, with a volume of 151712 shares traded. The stock had previously closed at $48.97.

The utilities provider reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.04. The company had revenue of $2.03 billion for the quarter, compared to analyst estimates of $1.91 billion. Fortis had a return on equity of 7.25% and a net margin of 14.48%. During the same quarter in the prior year, the company earned $0.67 earnings per share.

Fortis Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Tuesday, August 19th will be paid a dividend of $0.4448 per share. The ex-dividend date of this dividend is Tuesday, August 19th. This is an increase from Fortis's previous quarterly dividend of $0.43. This represents a $1.78 dividend on an annualized basis and a dividend yield of 3.6%. Fortis's dividend payout ratio is 75.11%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on FTS. Cibc World Mkts raised Fortis from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 21st. Royal Bank Of Canada increased their price objective on Fortis from $69.00 to $72.00 and gave the company a "sector perform" rating in a research note on Thursday, May 8th. CIBC raised Fortis from a "neutral" rating to a "sector outperform" rating in a research note on Monday, July 21st. Desjardins began coverage on Fortis in a research note on Tuesday, May 6th. They set a "hold" rating on the stock. Finally, Raymond James Financial raised Fortis from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, July 22nd. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $72.00.

Institutional Investors Weigh In On Fortis

Several institutional investors and hedge funds have recently added to or reduced their stakes in FTS. Commonwealth Equity Services LLC lifted its position in Fortis by 3.0% during the fourth quarter. Commonwealth Equity Services LLC now owns 9,515 shares of the utilities provider's stock valued at $396,000 after buying an additional 277 shares in the last quarter. American Century Companies Inc. increased its holdings in Fortis by 3.6% during the 4th quarter. American Century Companies Inc. now owns 91,121 shares of the utilities provider's stock worth $3,786,000 after purchasing an additional 3,193 shares during the last quarter. LPL Financial LLC increased its holdings in Fortis by 3.7% during the 4th quarter. LPL Financial LLC now owns 51,210 shares of the utilities provider's stock worth $2,129,000 after purchasing an additional 1,810 shares during the last quarter. Orion Portfolio Solutions LLC purchased a new stake in Fortis during the 4th quarter worth approximately $294,000. Finally, CIBC Private Wealth Group LLC acquired a new position in shares of Fortis in the 4th quarter worth approximately $249,000. 57.77% of the stock is currently owned by institutional investors and hedge funds.

Fortis Trading Up 1.8%

The firm has a market cap of $25.10 billion, a P/E ratio of 20.51, a P/E/G ratio of 3.91 and a beta of 0.46. The business's 50-day moving average is $47.80 and its two-hundred day moving average is $46.25. The company has a current ratio of 0.76, a quick ratio of 0.63 and a debt-to-equity ratio of 1.34.

About Fortis

Fortis Inc operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona; and 103,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,408 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity.