Canada's Hydro One Q3 revenue rises, EPS edges down

Overview

• Canadian electricity utility's Q3 revenue rose yr/yr on higher rates and peak demand

• Q3 basic EPS edged down to C$0.69 from C$0.70 as costs increased

• Company made C$1.08 bln in capital investments during the quarter

Outlook

• Hydro One proposes C$37 bln investment plan for 2028-2032 transmission and distribution systems

• Company expects investments to strengthen grid and meet rising electricity demand in Ontario

• Hydro One expects North Shore Link transmission line to be in service in 2029

Result Drivers

• HIGHER COSTS - Co said increased OM&A, depreciation, and interest costs weighed on Q3 earnings

• STORM RESTORATION - Higher asset removal costs were attributed to increased storm restoration activities

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Hydro One Limited is C$57.50, about 0.7% above its November 9 closing price of C$57.09

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Nov 10 - Canada's Keyera swings to Q3 net loss, adjusted EBITDA rises on acquisitions

• Nov 9 - Canada's Strathcona Resources Q3 production rises sequentially, raises quarterly dividend

• Nov 9 - Clearway Energy Q3 net income rises on growth investments, mark-to-market gains

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)