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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

C$2.49 bln

C$1.28 bln (2 Analysts)

Q3 EPS

C$0.68

Q3 Net Income

C$413 mln

Q3 Basic EPS

C$0.69

Q3 Dividend

C$0.35


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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