$FTS.TO

Fortis' Q1 Net Earnings Hold Steady YoY, Citing Rate Base Growth

Fortis' (FTS.TO) first-quarter net earnings were comparable to the year-ago period amid rate base growth across its utilities, the company said on Wednesday.Net earnings were C$501 million, or $0.99 per share. Net earnings per share was down $0.01 from the year-ago quarter and nearly matched the non-GAAP consensus estimate of $1 as compiled by FactSet.Capital expenditures for the quarter were $1.36 billion, down from $1.42 billion. The company is on track to achieve its $5.6 billion annual capital plan.The company's $28.8 billion five-year capital plan is expected to increase midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030, translating into a five-year compound annual growth rate of 7%.Fortis expects its long-term growth in rate base to drive earnings that support dividend growth guidance of 4-6% annually through 2030.Additionally, Gary Smith, executive vice president of operations and technology, will retire effective May 31.

Fortis Q1 Net Earnings of $501M or $0.99 Per Common Share

CIBC Revises Price Targets for Power and Utility Equities

CIBC Capital Markets over the weekend outlined changes to price targets of power and regulated utilities equities ahead of the first-quarter earnings season.CIBC raised its price target for Canadian Utilities (CU.TO) to C$51.00 from C$47.00 given a higher P/E multiple applied to its 2027 earnings estimate. ATCO (ACO-X.TO)'s price target was also increased to C$82 from C$72.The price targets for Emera (EMA.TO), Fortis (FTS.TO) and Hydro One (H.TO) were each increased by C$1.00, while Algonquin Power & Utilities (AQN.TO)'s price target increased to US$6.50 from US$6.25.CIBC also boosted Brookfield Renewable Partners' (BEP-UN.TO) price target to US$40.00 from US$37.00 to reflect higher estimates.According to CIBC, investors should hold a balance of power and regulated utilities equities. Capital Power (CPX.TO) and Brookfield are among the preferred power names while ATCO and Fortis are the preferred regulated utilities names.Price: $66.33, Change: $-0.14, Percent Change: -0.22%