- Hydro One’s fourth-quarter revenue reported at C$2.10 billion, surpassing estimates of C$1.9 billion, reflecting a 5.9% year-over-year increase.
- Transmission revenue slightly declined by 0.2% year-over-year to C$505 million, falling short of the C$515.9 million estimate.
- Distribution revenue saw a significant rise of 8.5% year-over-year, reaching C$1.58 billion, exceeding the estimate of C$1.37 billion.
- Other revenue drastically decreased by 50% year-over-year to C$7 million, below the expected C$13.5 million.
- Distribution operation, maintenance, and administration costs dropped by 11% year-over-year to C$204 million, against expectations of C$229.4 million.
- Transmission operation, maintenance, and administration costs decreased by 9.2% year-over-year to C$128 million, lower than the estimate of C$145.6 million.
- Other operation, maintenance, and administration costs surged by 58% year-over-year to C$41 million, exceeding the estimated C$21.2 million.
- Capital expenditure increased by 7.2% year-over-year to C$799 million.
- The company revised its earnings per share growth guidance for 2023-2027 to an annualized rate of 6% to 8%, up from 5% to 7% previously.
- Expected earnings per share guidance for 2027 was updated to a range of $2.15 to $2.37, compared to past expectations of $2.05 to $2.26.
- Current analyst recommendations include 0 buys, 10 holds, and 3 sells.
A look at Hydro One Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Hydro One Limited, a key player in the electrical transmission and distribution sector in Ontario, exhibits a solid overall outlook according to Smartkarma Smart Scores. With a balanced score of 3 across Value, Dividend, and Growth factors, the company reflects stability and moderate potential for future growth. While its Resilience score slightly lags at 2, indicating some room for improvement in mitigating risks, the Momentum score of 3 showcases a steady pace of development. These scores hint at a promising long-term outlook for Hydro One, positioning it as a reliable choice for investors seeking a blend of stability and growth potential.
As an essential provider of electricity to various customer segments throughout Ontario, including industrial clients and municipal utilities, Hydro One leverages its ownership of the province’s transmission and distribution network. Its strategic positioning within the sector underscores its importance in ensuring the safe and reliable delivery of electricity to customers. By maintaining a balanced profile across key Smartkarma Smart Scores, Hydro One appears well-equipped to navigate future market challenges and capitalize on growth opportunities in the long run, making it a compelling investment option in the utilities industry.
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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