Energy services firm Emera's Q2 adjusted EPS up 49%, beats estimates

Overview

• Emera Q2 adjusted EPS grows 49% yr/yr, beating analyst expectations

• Company's reported EPS flat at C$0.45 due to NMGC sale charges

• Growth driven by Tampa Electric, Emera Energy Services, and NMGC

Outlook

• Emera commits to 5%-7% annual average EPS growth through 2027

• Company expects 7%-8% rate base growth through 2029

• Emera highlights capital investment needs for infrastructure reliability

Result Drivers

• FLORIDA WEATHER - Favorable weather conditions in Florida contributed to earnings growth, per CEO Scott Balfour

• CUSTOMER GROWTH - Increased earnings at Tampa Electric driven by customer growth and new base rates

• LOWER CORPORATE COSTS - Decreased corporate costs supported higher adjusted net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and 1 "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 Emera Inc is C$65.00, about 1.7% below its August 7 closing price of C$66.11

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw4jQCh8a