Middlesex Water Q1 operating revenue rises on higher wholesale demand

Overview

• U.S. water utility's Q1 operating revenue rose yr/yr on higher demand and rate increases

• Diluted EPS for Q1 increased to $0.57 from $0.53 a year earlier

• Company invested $21 mln in water and wastewater infrastructure upgrades during Q1

Outlook

• Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• WHOLESALE DEMAND AND RATE INCREASES - Co said higher wholesale demand, customer consumption, and base rate increases in the Middlesex System drove operating revenue growth

• CUSTOMER GROWTH AND RATE INCREASES - Co said increased customer consumption, customer growth and rate increases in the Tidewater System contributed to higher revenue

• HIGHER OPERATING COSTS - Co said operating expenses rose due to increased variable production costs from higher production resulting from increased customer demand and higher labor cost due to wage and employee headcount increases, partially offset by higher capitalizable costs

Company press release: ID:nGNX5S9nDg

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 Middlesex Water Co is $60.00, about 15.4% above its April 29 closing price of $51.99

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