The Fortis Inc. (TSE:FTS) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Fortis Inc. (TSE:FTS) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.8% to hit CA$2.9b. Statutory earnings per share (EPS) came in at CA$0.78, some 3.0% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the ten analysts covering Fortis are now predicting revenues of CA$13.6b in 2026. If met, this would reflect a decent 9.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.8% to CA$3.62. Before this earnings report, the analysts had been forecasting revenues of CA$13.1b and earnings per share (EPS) of CA$3.61 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

Check out our latest analysis for Fortis

Even though revenue forecasts increased, there was no change to the consensus price target of CA$81.63, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Fortis at CA$89.00 per share, while the most bearish prices it at CA$70.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Fortis' rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fortis is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Fortis going out to 2028, and you can see them free on our platform here..

Even so, be aware that Fortis is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...