Canadian Utilities (TSE:CU) Issues Quarterly Earnings Results

Canadian Utilities (TSE:CU) released its quarterly earnings results on Friday. The company reported C$0.43 earnings per share (EPS) for the quarter, FiscalAI reports. Canadian Utilities had a return on equity of 1.88% and a net margin of 3.30%. The business had revenue of C$902.00 million during the quarter.

Here are the key takeaways from Canadian Utilities’ conference call:

• Canadian Utilities reported Q3 adjusted earnings of CAD 117 million, up from CAD 108 million year over year, with growth at ATCO Energy Systems and ATCO Australia. Operating cash flow rose CAD 58 million; ATCO EnPower earnings were lower due to reduced carbon pricing and turbine-availability compensation.
• The proposed Emera merger is expected to increase Canadian Utilities shareholders’ dividend by approximately 20% upon closing and combine the companies into a larger, more diversified utility. Management highlighted added capital access and expertise for potential large transmission interties and gas-fired generation; the transaction remains subject to approvals.
• The company is executing a CAD 12 billion five-year capital program, including the CAD 2.9 billion Yellowhead Pipeline, where construction began in August and the in-service target remains Q4 2027. Management sees potential for additional Alberta investment beyond the current plan, though those opportunities are not yet included in its outlook.
• Management reported improved year-over-year reliability across Alberta distribution utilities and cited a track record of cost efficiencies and returns above approved levels. Natural gas storage expansions are also progressing, with completed and planned projects expected to lift capacity by 10% to about 130 petajoules.

Canadian Utilities Price Performance

Shares of TSE:CU traded down C$0.49 during trading on Friday, reaching C$52.19. 350,288 shares of the company traded hands, compared to its average volume of 627,219. The company’s 50 day moving average is C$50.52 and its two-hundred day moving average is C$49.96. The firm has a market capitalization of C$14.21 billion, a PE ratio of 326.19, a PEG ratio of 2.38 and a beta of 0.40. The company has a quick ratio of 1.30, a current ratio of 1.80 and a debt-to-equity ratio of 184.88. Canadian Utilities has a 52 week low of C$39.95 and a 52 week high of C$56.90.

Canadian Utilities Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, December 1st will be issued a $0.4623 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.85 annualized dividend and a yield of 3.5%. Canadian Utilities’s payout ratio is currently 1,150.00%.

Analyst Upgrades and Downgrades

CU has been the topic of several recent research reports. National Bank Financial increased their price objective on Canadian Utilities from C$55.00 to C$56.00 and gave the stock a “sector perform” rating in a research report on Thursday, October 8th. Scotiabank upped their price target on shares of Canadian Utilities from C$50.00 to C$53.00 and gave the company a “sector perform” rating in a research note on Tuesday, July 21st. Royal Bank Of Canada upped their price target on shares of Canadian Utilities from C$58.00 to C$63.00 and gave the company a “sector perform” rating in a research note on Thursday, October 8th. BMO Capital Markets raised their price target on shares of Canadian Utilities from C$50.00 to C$55.00 and gave the stock a “market perform” rating in a research report on Thursday, July 30th. Finally, Canadian Imperial Bank of Commerce dropped their price objective on shares of Canadian Utilities from C$55.00 to C$52.00 in a research note on Tuesday, September 22nd. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of C$54.71.

About Canadian Utilities

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company’s main divisions include electricity (generation, transmission, and distribution), pipelines & liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States and Mexico. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta.