National Bank Financial Boosts Earnings Estimates for Fortis

Key Points

• National Bank Financial has raised its FY2025 earnings estimate for Fortis from $2.45 to $2.49 per share, indicating improved financial expectations for the utility company.
• Fortis recently announced a dividend increase, now paying $0.4448 quarterly, which reflects a 3.5% yield and a payout ratio of 73.25%.
• The company reported a net margin of 14.48% and earnings exceeding expectations in its latest quarterly results, with revenue of $2.03 billion against a consensus estimate of $1.91 billion.

Fortis (NYSE:FTS - Free Report) - Equities researchers at National Bank Financial raised their FY2025 earnings per share estimates for shares of Fortis in a research note issued on Monday, August 4th. National Bank Financial analyst P. Kenny now forecasts that the utilities provider will post earnings of $2.49 per share for the year, up from their previous forecast of $2.45. The consensus estimate for Fortis' current full-year earnings is $2.35 per share. National Bank Financial also issued estimates for Fortis' FY2026 earnings at $2.60 EPS.

Several other analysts have also issued reports on FTS. Raymond James Financial reiterated an "outperform" rating on shares of Fortis in a report on Tuesday. Desjardins raised Fortis from a "hold" rating to a "buy" rating in a research report on Tuesday. National Bankshares reiterated a "sector perform" rating on shares of Fortis in a report on Tuesday. Cibc World Mkts raised Fortis from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 21st. Finally, BMO Capital Markets reaffirmed a "market perform" rating on shares of Fortis in a research report on Monday. Two analysts have rated the stock with a sell rating, four have issued a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, Fortis presently has a consensus rating of "Hold" and a consensus target price of $72.00.

Fortis Stock Up 0.0%

Shares of NYSE:FTS traded up $0.02 during trading on Wednesday, reaching $50.83. 566,508 shares of the company traded hands, compared to its average volume of 600,394. The firm has a fifty day simple moving average of $48.02 and a 200 day simple moving average of $46.51. The company has a quick ratio of 0.63, a current ratio of 0.58 and a debt-to-equity ratio of 1.30. Fortis has a 1-year low of $40.32 and a 1-year high of $51.45. The firm has a market cap of $25.60 billion, a P/E ratio of 20.92, a price-to-earnings-growth ratio of 3.96 and a beta of 0.46.

Fortis (NYSE:FTS - Get Free Report) last posted its quarterly earnings results on Friday, August 1st. The utilities provider reported $0.55 EPS for the quarter, topping the consensus estimate of $0.51 by $0.04. The business had revenue of $2.03 billion during the quarter, compared to analysts' expectations of $1.91 billion. Fortis had a net margin of 14.48% and a return on equity of 7.24%. During the same period last year, the company posted $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 $0.4448 dividend. This represents a $1.78 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Tuesday, August 19th. This is a positive change from Fortis's previous quarterly dividend of $0.43. Fortis's dividend payout ratio (DPR) is 73.25%.

Institutional Investors Weigh In On Fortis

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cullen Frost Bankers Inc. acquired a new position in Fortis during the first quarter valued at approximately $28,000. Trust Co. of Toledo NA OH bought a new stake in shares of Fortis during the 2nd quarter worth $28,000. Farther Finance Advisors LLC grew its stake in Fortis by 286.7% in the 1st quarter. Farther Finance Advisors LLC now owns 1,106 shares of the utilities provider's stock valued at $51,000 after buying an additional 820 shares during the last quarter. Hexagon Capital Partners LLC raised its holdings in Fortis by 111.7% in the 1st quarter. Hexagon Capital Partners LLC now owns 1,226 shares of the utilities provider's stock worth $56,000 after acquiring an additional 647 shares during the period. Finally, Allworth Financial LP raised its holdings in Fortis by 157.3% in the 2nd quarter. Allworth Financial LP now owns 1,253 shares of the utilities provider's stock worth $60,000 after acquiring an additional 766 shares during the period. 57.77% of the stock is currently owned by institutional investors and hedge funds.

Fortis Company Profile

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.