Emera shows average second Quarter but good first Half
Emera reported it's second quarter and first half results on August10.The second quarter showed adjusted E.P.S of $.55 per share.Credit Suisse which follows Emera predicted $.54 while the street on average predicted $.53 per share.But this is a net earnings measurement rather than adjusted EBITDA which is more of a measurement of performance.Emera stated that it had acquisition costs (of Teco Energy) and tax adjustment costs of $190 million and this reduced adjusted earnings.Emera is still reporting acquisition costs for Teco.In addition,EMA has added almost 85 million new shares since August of 2016.This was done largely to help finance the Teco acquisition.
6 month Results
Earnings per share was down form Q1 but that was chiefly due to accounting charges.As adjusted EBITDA went from $325 million in the first half of 2016 to $703 million for 2017.This reflects the enhanced earnings power now that Emera has acquired Teco Energy.Even with 85 million new shares e.p.s for the 6 months was $1.95 versus $1.69 for the same period in 2016.Teco raised their total assets from $8 billion to $20 billion.And Emera expected the acquisition to be accretive only in 2017 but increasing in earning power until 2019.This the CEO said will support their dividend growth of 8% until 2019.This is interesting as EMA has not had a dividend increase since August 2016;it is due now.Today Emera pays adividend of $2.09 and with a 8% increase it would be around $2.26 per share.Maybe it will be announced in Q3.
And now for the Second Half
The Teco Energy acquisition has had a big impact on Emera.Yet the CEO said that he expected a positive impact on earnings only in 2017 but increasing until 2019. He also announced that there would be an 8% annual growth in the dividend until 2019.Since the last dividend increase was in August 2016 there should be an increase,probably in the third quarter.In the second quarter report the chairman said"our earnings and cash flow combined with steady progress of our capital plans,support Emera's long term prospects and dividend growth target".Credit Suisse saw the second quarter report and gave a target price of $58.This blog finds that a little rich and thinks $51 by January would be more realistic.However most people know that the Swiss can be very astute about chocolate and utilities. use Blogdaleupsome to analyze Cdn. utilities
Earnings per share was down form Q1 but that was chiefly due to accounting charges.As adjusted EBITDA went from $325 million in the first half of 2016 to $703 million for 2017.This reflects the enhanced earnings power now that Emera has acquired Teco Energy.Even with 85 million new shares e.p.s for the 6 months was $1.95 versus $1.69 for the same period in 2016.Teco raised their total assets from $8 billion to $20 billion.And Emera expected the acquisition to be accretive only in 2017 but increasing in earning power until 2019.This the CEO said will support their dividend growth of 8% until 2019.This is interesting as EMA has not had a dividend increase since August 2016;it is due now.Today Emera pays adividend of $2.09 and with a 8% increase it would be around $2.26 per share.Maybe it will be announced in Q3.
And now for the Second Half
The Teco Energy acquisition has had a big impact on Emera.Yet the CEO said that he expected a positive impact on earnings only in 2017 but increasing until 2019. He also announced that there would be an 8% annual growth in the dividend until 2019.Since the last dividend increase was in August 2016 there should be an increase,probably in the third quarter.In the second quarter report the chairman said"our earnings and cash flow combined with steady progress of our capital plans,support Emera's long term prospects and dividend growth target".Credit Suisse saw the second quarter report and gave a target price of $58.This blog finds that a little rich and thinks $51 by January would be more realistic.However most people know that the Swiss can be very astute about chocolate and utilities. use Blogdaleupsome to analyze Cdn. utilities
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