National Bank Financial Expects Reduced Earnings for BCE

Key Points

• National Bank Financial has revised its FY2026 earnings per share estimate for BCE from $1.92 to $1.90, slightly below the consensus estimate of $1.94.
• BCE reported $0.46 earnings per share for the last quarter, missing analyst expectations by $0.06 and experiencing a revenue shortfall with $4.47 billion compared to the anticipated $5.91 billion.
• The company declared a quarterly dividend of $0.4375 per share, yielding 7.5%, with its payout ratio currently standing at an unusually high 437.93%.

BCE, Inc. (NYSE:BCE - Free Report) TSE: BCE - National Bank Financial dropped their FY2026 earnings per share (EPS) estimates for shares of BCE in a note issued to investors on Wednesday, October 1st. National Bank Financial analyst A. Shine now expects that the utilities provider will post earnings per share of $1.90 for the year, down from their prior forecast of $1.92. The consensus estimate for BCE's current full-year earnings is $1.94 per share.

BCE (NYSE:BCE - Get Free Report) TSE: BCE last announced its earnings results on Thursday, August 7th. The utilities provider reported $0.46 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.06). BCE had a net margin of 1.96% and a return on equity of 18.89%. The business had revenue of $4.47 billion for the quarter, compared to analysts' expectations of $5.91 billion. During the same quarter last year, the business earned $0.78 EPS. The company's quarterly revenue was up 1.3% on a year-over-year basis. BCE has set its FY 2025 guidance at 1.910-1.980 EPS.

A number of other brokerages have also weighed in on BCE. Weiss Ratings restated a "sell (d+)" rating on shares of BCE in a report on Saturday, September 27th. TD Securities restated a "hold" rating on shares of BCE in a report on Friday, August 8th. Desjardins upgraded BCE from a "hold" rating to a "moderate buy" rating in a report on Tuesday, August 5th. Cibc World Mkts lowered BCE from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 3rd. Finally, National Bankshares restated an "outperform" rating on shares of BCE in a report on Friday, August 15th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $32.50.

BCE Trading Up 0.6%

Shares of NYSE:BCE opened at $23.37 on Monday. BCE has a 1 year low of $20.28 and a 1 year high of $33.91. The firm has a market capitalization of $21.79 billion, a price-to-earnings ratio of 80.57, a price-to-earnings-growth ratio of 3.94 and a beta of 0.63. The company has a debt-to-equity ratio of 2.17, a current ratio of 0.61 and a quick ratio of 0.57. The business's 50 day moving average price is $24.15 and its 200-day moving average price is $22.95.

BCE Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th will be issued a dividend of $0.4375 per share. This represents a $1.75 annualized dividend and a dividend yield of 7.5%. The ex-dividend date is Monday, September 15th. BCE's payout ratio is currently 437.93%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of BCE. Hilltop National Bank purchased a new position in shares of BCE during the 2nd quarter worth $28,000. Cullen Frost Bankers Inc. raised its holdings in shares of BCE by 2,459.6% during the 2nd quarter. Cullen Frost Bankers Inc. now owns 1,459 shares of the utilities provider's stock worth $32,000 after acquiring an additional 1,402 shares during the period. SVB Wealth LLC purchased a new position in shares of BCE during the 1st quarter worth $35,000. Trust Co. of Toledo NA OH purchased a new position in shares of BCE during the 2nd quarter worth $40,000. Finally, Bayforest Capital Ltd purchased a new position in shares of BCE during the 2nd quarter worth $42,000. Hedge funds and other institutional investors own 41.46% of the company's stock.

About BCE

BCE Inc, a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.