Company Reports

We are maintaining our CAD 50 fair value estimate for narrow-moat Emera after the company reported first-quarter operating earnings per share of CAD 0.76 compared with CAD 0.99 in the year-ago quarter.

Emera has transitioned to a predominantly U.S. utility that generates a majority of its earnings and growth from its Florida operations. While Emera's Canadian utilities have historically operated under a constructive regulatory framework, Emera's U.S. utilities offer more growth opportunities and higher allowed returns.

We are maintaining our CAD 54 value estimate for narrow-moat Emera after the company reported operating earnings per share of CAD 2.96 for 2023 compared with CAD 3.20 in 2022.

Emera has transitioned to a predominantly U.S. utility that generates a majority of its earnings and growth from its Florida operations. While Emera's Canadian utilities have historically operated under a constructive regulatory framework, Emera's U.S. utilities offer significantly more growth opportunities and higher allowed returns.

We are maintaining our Emera CAD 54 per share value estimate after Emera reported third-quarter operating earnings per share of CAD 0.75 compared with CAD 0.76 in the same year-ago period. Our narrow moat remains unchanged.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

Emera has transitioned to a predominantly U.S. utility that generates a majority of its earnings and growth from its Florida operations. While Emera's Canadian utilities have historically operated under a constructive regulatory framework, Emera's U.S. utilities offer significantly more growth opportunities and higher allowed returns.

We are maintaining our CAD 54 per share value estimate for Emera after the company reported second-quarter operating earnings per share of CAD 0.60 compared with CAD 0.59 in the same year-ago period. Our narrow moat remains unchanged.

We are maintaining our CAD 54 fair value estimate for Emera after the company reported first-quarter operating earnings per share of CAD 0.99 compared with CAD 0.93 in the year-ago period. Our narrow moat rating is unchanged.

Emera has transitioned to a predominantly U.S. utility that generates a majority of its earnings and growth from its Florida operations. While Emera's Canadian utilities have historically operated under a constructive regulatory framework, Emera's U.S. utilities offer significantly more growth opportunities and higher allowed returns.

We are maintaining our CAD 54 per share value estimate for Emera after the company reported full-year 2022 operating earnings per share of CAD 3.03, which excludes the after-tax litigation settlement benefit, compared with CAD 2.81 per share in 2021. Our narrow moat and stable moat trend remain unchanged.

Emera has transitioned to a predominantly U.S.utility that generates a majority of its earnings from its Florida operations after its transformative Teco acquisition. While Emera's Canadian utilities have historically operated under a constructive regulatory framework, Emera's U.S. utilities offer significantly more growth opportunities and higher allowed returns.

We are maintaining our CAD 54 fair value estimate for Emera after the company reported third-quarter adjusted earnings per share of CAD 0.76, up from CAD 0.68 in the year-ago quarter. The company's 4% dividend increase is in line with management's long-term 4%-5% annual dividend growth target and our estimate. We expect dividend growth to trail earnings growth as Emera lowers its dividend payout ratio to a level that is more in line with its peers'. Our narrow moat and stable moat trend ratings are unchanged.

We are lowering our Emera fair value estimate to CAD 54 from CAD 58 after Premier Tim Houston, on behalf of the Government of Nova Scotia, introduced legislation that would materially affect the growth and operating cost recovery at Emera's Nova Scotia Power subsidiary. Our narrow moat and stable moat trend remain unchanged.

Emera has transitioned to a predominantly U.S.utility that generates a majority of its earnings from its Florida operations after its transformative Teco acquisition. While Emera's Canadian utilities have historically operated under a constructive regulatory framework, Emera's U.S. utilities offer significantly more growth opportunities and higher allowed returns.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.

Our initial analysis of the U.S. Inflation Reduction Act that President Joe Biden plans to sign on Aug. 16 has led us to reaffirm or make slight increases to our fair value estimates for U.S. utilities. We are reaffirming our moat and moat trend ratings.

Emera has transitioned to a predominantly U.S.utility that generates a majority of its earnings from its Florida operations after its transformative Teco acquisition. While Emera's Canadian utilities operate under a constructive regulatory framework, Emera's U.S. utilities offer significantly more growth opportunities and higher allowed returns.

We are maintaining our CAD 58 fair value estimate for Emera after the company reported second-quarter adjusted earnings per share of CAD 0.59, up from CAD 0.54 in the same year-ago quarter. The company continues to target 4%-5% dividend growth, in line with our estimate. Our narrow moat and stable moat trend ratings are unchanged.

We are reaffirming our fair value estimates and moat ratings for our U.S. utility coverage after the U.S. Bureau of Labor Statistics reported 9.1% core inflation on July 14. We continue consider inflation to be the largest threat to utilities' long-term returns and ability to pay robust, growing dividends.