As you might know, Fortis Inc.( TSE:FTS ) last week released its latest first-quarter, and things did not turn out so great for shareholders. Fortis missed analyst forecasts, with revenues of CA$3.4b and statutory earnings per share (EPS) of CA$0.99, falling short by 4.2% and 2.2% respectively. 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.
Taking into account the latest results, the current consensus from Fortis' nine analysts is for revenues of CA$13.9b in 2026. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 11% to CA$3.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$13.1b and earnings per share (EPS) of CA$3.67 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
See our latest analysis for Fortis
It may not be a surprise to see thatthe analysts have reconfirmed their price target of CA$78.83, implying that the uplift in revenue is not expected to greatly contribute to Fortis's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fortis analyst has a price target of CA$85.00 per share, while the most pessimistic values it at CA$71.00. This is a very narrow spread of estimates, implying either that Fortis is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry . The analysts are definitely expecting Fortis' growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. 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. The consensus price target held steady at CA$78.83, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Fortis analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Fortis (1 can't be ignored!) that we have uncovered.
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This article by Simply Wall St is general in nature.
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