New Jersey Resources Q1 net income falls

Overview

• Natural gas provider's fiscal Q1 net income decreased yr/yr

• Company raised fiscal 2026 net financial earnings per share guidance

• Q1 net financial earnings decreased due to prior-year solar asset sale gain

• Energy Services segment benefits from natural gas price volatility

Outlook

• New Jersey Resources raises fiscal 2026 NFEPS guidance to $3.28-$3.43

• Company maintains 7-9% long-term NFEPS growth target from fiscal 2025 base

Result Drivers

• NATURAL GAS PRICE VOLATILITY - Energy Services benefited from increased natural gas price volatility, enhancing financial margins

• BASE RATE CASE SETTLEMENT - NJNG's NFE improved due to the full impact of a base rate case settlement on utility gross margin

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for New Jersey Resources Corp is $53.50, about 8.1% above its January 30 closing price of $49.48

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw2HHR28a

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