On Tuesday, BMO (TSX:BMO) Capital maintained its Outperform rating and Cdn$42.00 price target for Hydro One Ltd. (TSX:H:CN) (OTC: HRNNF). The company's adjusted Q1/24 earnings per share (EPS) of $0.49 matched the consensus and were slightly higher than BMO's estimate of $0.48. The analyst pointed to better-than-expected distribution results as the key driver of this positive variance.
Hydro One, which reported its earnings earlier today, showed no changes to its capital expenditure program set to run through 2027. Additionally, the company announced a 6% increase in its dividend, which was anticipated by the market.
The utility company's performance in the first quarter of 2024, with an EPS consistent with market expectations, suggests a stable financial position. The unchanged capital expenditure program indicates a steady investment strategy moving forward.
The dividend hike aligns with Hydro One's history of providing returns to shareholders and reflects confidence in the company's financial health and future prospects. This increase is expected to have a neutral impact on the company's share price, as it was already expected by investors.
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