Essential Utilities Q2 revenue beats expectations, raises quarterly dividend
Overview
Essential Q2 revenue rises 18.5% yr/yr, beating analyst expectations, per LSEG data
Q2 net income up to $107.8 mln from $75.4 mln in Q2 2024
Co raises quarterly dividend by 5.25%
Outlook
Essential expects 2025 EPS above $2.07-$2.11 due to non-recurring benefits
Co reaffirms long-term targets
Company plans $1.4-$1.5 bln infrastructure investment in 2025
Regulated water rate base to grow 6% CAGR through 2029
Result Drivers
RATE INCREASES - Co attributes revenue growth to increased rates across segments
PURCHASED GAS COSTS - Higher purchased gas costs contributed to revenue growth
EXPENSE INCREASES - Operations and maintenance expenses rose due to higher employee-related costs and bad debt expense
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $514.91 mln | $467.20 mln (2 Analysts) |
Q2 EPS |
| $0.38 |
|
Q2 Net Income |
| $107.83 mln |
|
Q2 Operating income |
| $185.27 mln |
|
Q2 Pretax Profit |
| $112.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the water & related utilities peer group is "buy"
Wall Street's median 12-month price target for Essential Utilities Inc is $44.50, about 17.3% above its July 31 closing price of $36.80
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nBw1D52Rda
