Fortis Inc (FTS) reported a lower profit in the second quarter of 2021 than a year ago due to unfavorable exchange rates and one-time costs. The North American gas and electric utility company also released its 2021 Sustainability Update.
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Net earnings came in at C$253 million (C$0.54 per share) in Q2 2021, down from C$274 million (C$0.59 per share) in Q2 2020.
On an adjusted basis, net earnings missed estimates by C$0.04, coming in at C$259 million (C$0.55 per share), compared to C$258 million (C$0.56 per share) a year ago.
Regarding capital expenditures, the company said that its C$3.8 billion investment plan for 2021 is on track, with C$1.7 billion invested in the first six months.
Fortis’ President and CEO David Hutchens said, “Throughout the quarter our employees remained focused on serving our customers safely and continued to execute our annual capital plan. Financial results for the second quarter, while impacted by a lower foreign exchange rate, reflect the underlying growth of our regulated utility investments and warmer weather in Arizona.”
“Our Sustainability Update released today demonstrates our commitment, and ability, to meet our goal of reducing greenhouse gas emissions 75% by 2035. Transitioning to renewables and building the energy delivery infrastructure we need for a cleaner energy future is at the heart of our long-term strategy,” added Hutchens. (See Fortis Inc stock charts on TipRanks)
On July 18, JPMorgan analyst Richard Sunderland maintained a Hold rating on FTS while raising its price target to C$58.00 (from C$57.00). This implies 3.3% upside potential.
Overall, consensus among Wall Street analysts is that FTS is a Hold based on 2 Buys and 6 Holds. The average Fortis price target of C$57.13 implies 1.7% upside potential to current levels.
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