- Fortis reported an adjusted net income of C$416 million for the fourth quarter, a 19% increase from the previous year, surpassing the estimated C$404.1 million.
- The adjusted earnings per share (EPS) stood at C$0.83, an improvement from last year’s C$0.72 and above the estimated C$0.81.
- The company has successfully reduced its direct greenhouse gas emissions by 34% from the 2019 baseline, with goals to further cut emissions by 50% by 2030 and 75% by 2035.
- Fortis anticipates that long-term growth in its rate base will drive earnings to support a dividend growth guidance of 4-6% annually through 2029.
- ITC Holdings, a Fortis subsidiary, projects investments ranging between US$3.7 billion and US$4.2 billion, primarily occurring post-2029.
- Market sentiment includes 1 buy rating, 10 hold ratings, and 5 sell ratings for Fortis shares.
A look at Fortis /Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Fortis /Canada, a gas and electric distribution company, is displaying a promising long-term outlook based on its Smartkarma Smart Scores. With a strong Value score of 4 and a solid Dividend score of 4, Fortis is positioned well in terms of financial health and ability to provide steady dividends to investors. Although its Growth score is slightly lower at 3, the company’s Momentum score of 4 indicates a positive trend in its stock performance, suggesting good upside potential.
However, Fortis /Canada does face some challenges as indicated by its Resilience score of 2. This might suggest some vulnerabilities in the face of economic uncertainties or industry disruptions. Overall, the company’s robust performance in value, dividends, and momentum bodes well for its future prospects, making it an interesting option for investors seeking stability and potential growth in the utility sector.
Summary: Fortis, Inc. operates as a gas and electric distribution company providing services in regulated utilities such as electric and gas, along with non-regulated hydroelectric operations. Serving customers across Canada, the United States, and the Caribbean, Fortis is a well-established player in the energy sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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