ST. JOHN'S, Newfoundland and Labrador - Fortis Inc. (NYSE:FTS) reported third quarter earnings that surpassed analyst estimates, sending shares up 3.3% in premarket trading Tuesday.
The North American regulated electric and gas utility company posted adjusted earnings per share of $0.85 for Q3, significantly beating the analyst consensus of $0.60. Net earnings rose to $420 million or $0.85 per common share, up from $394 million or $0.81 per share in the same quarter last year.
"Our strong third quarter results reflect the growth of our utilities as they continue to execute their capital programs," said David Hutchens, President and CEO of Fortis.
The company said the earnings increase was driven by rate base growth across its utilities and strong performance in Arizona, largely due to new customer rates at Tucson Electric Power effective September 1, 2023. Unrealized gains on derivative contracts also contributed to earnings growth.
Fortis reaffirmed its $26 billion five-year capital plan, which is expected to increase its midyear rate base from $38.8 billion in 2024 to $53.0 billion by 2029, representing a compound annual growth rate of 6.5%.
The company declared a 4.2% increase in its fourth quarter dividend, marking 51 consecutive years of dividend increases. Fortis remains committed to 4-6% annual dividend growth through 2029.
Capital expenditures for 2024 are now expected to be approximately $5.2 billion, up from the previous forecast of $4.8 billion, due to timing of certain projects and currency effects.
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