- Hydro One’s 2Q revenue reached C$2.03 billion, up 9.4% from the previous year, beating the estimate of C$1.95 billion.
- Transmission revenue was C$583 million, an increase of 4.3% year-over-year, surpassing the estimate of C$570.8 million.
- Distribution revenue stood at C$1.44 billion, growing by 12% year-over-year, and exceeded the estimate of C$1.35 billion.
- Other revenue came in at C$12 million, a decrease of 7.7% year-over-year, but slightly above the estimate of C$11.6 million.
- Distribution operation, maintenance, and administration costs were C$182 million, down 3.2% year-over-year, and lower than the estimate of C$196.4 million.
- Transmission operation, maintenance, and administration costs totaled C$113 million, a reduction of 8.9% year-over-year, below the estimate of C$123.9 million.
- Other operation, maintenance, and administration costs remained steady at C$24 million, in line with the previous year, and higher than the estimate of C$21.4 million.
- Capital expenditure reached C$818 million, a significant increase of 26% year-over-year, exceeding the estimate of C$727.5 million.
- Analyst recommendations included 2 buys, 8 holds, and 1 sell.
“`
A look at Hydro One Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Hydro One Limited, an electrical transmission and distribution utility in Ontario, is positioned for a promising long-term outlook based on its Smartkarma Smart Scores. With solid scores across key factors such as Value, Dividend, and Growth, the company demonstrates a strong foundation for future performance. A notable Momentum score further enhances its outlook, indicating positive market sentiment and potential for continued growth. However, the Resilience score of 2 suggests a slightly lower level of stability, which may warrant careful monitoring of market conditions. Overall, Hydro One’s role in delivering electricity safely and reliably positions it well for sustainable growth in the future.
Summary: Hydro One Limited stands out as a prominent electrical utility company in Ontario, providing essential services to customers throughout the province. With ownership of Ontario’s transmission and distribution network, the company plays a critical role in ensuring energy delivery to a diverse range of customers, including industrial and municipal sectors. As reflected in its Smartkarma Smart Scores, Hydro One presents a balanced outlook for investors, with strengths in key areas indicating resilience and growth potential in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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