Emera stock comes into this earnings report under a cloud, with the shares down about 5% over the past week and about 6% over the past month despite a relatively flat 90 day stretch. The immediate reaction suggests investors are focused on risk. The headline from the quarter tells a different story. Adjusted earnings per share of about C$0.69 keep Emera on track for management’s multi year adjusted EPS growth target, and the pending New Mexico Gas sale, with US$650m to US$700m of expected after tax proceeds, goes straight at the company’s balance sheet strain.
Is Emera a solid utility temporarily out of favour, or is the premium P/E pointing to a stock that already prices in most of its earnings story? Compare the current share…