NYSE$NWN

Northwest Natural Holding Company · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong first quarter earnings driven by new rates and customer growth.

NW Natural Holdings reported a strong first quarter with net income increasing by $15.5 million to $71.7 million, or $2.01 per share, driven by new rates in Oregon and Washington, customer growth, and lower pension expense, which was partially offset by higher operations and maintenance expenses. The company reaffirmed its 2023 earnings guidance of $2.55 to $2.75 per share and its long-term earnings per share growth target of 4% to 6%. NW Natural continues to expand its renewable natural gas (RNG) portfolio and water operations & maintenance service business.

  • Net income was $71.7 million ($2.01 per share) for the first three months of 2023, compared to $56.2 million ($1.80 per share) for the same period in 2022.
  • Added nearly 8,100 natural gas meters in the last 12 months for a growth rate of 1.0% as of March 31, 2023.
  • Completed construction on Dakota City renewable natural gas (RNG) facility.
  • NW Natural Water launched an operations & maintenance service business.

Headline financials

Total Revenue

$462M

Previous: $350M+32.0%
EPS (adj)

$2.01

Previous: $1.80+11.7%
Capital Expenditures

-$71.3M

Previous: -$68.5M-4.0%
Free Cash Flow

$406K

Previous: -$12.3M+103.3%
Net Income

$71.7M

Previous: $56.2M+27.4%
Operating Income

$114M

Previous: $87.6M+29.5%
Gross Profit

$391M

Previous: $293M+33.4%
Cash & Equivalents

$141M

Previous: $24.3M+478.9%
Total Assets

$4.59B

Previous: $4.05B+13.3%

Revenue & EPS history

NW Natural · Revenue · Quarterly

$462M

Q1 2023+32%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

NW Natural Holdings is reaffirming 2023 earnings guidance in the range of $2.55 to $2.75 per share. NW Natural Holdings' long-term earnings per share growth rate target is 4% to 6% compounded annually from 2022 through 2027.

Tailwinds

  • Continued customer growth
  • Average weather conditions
  • No significant changes in prevailing regulatory policies, mechanisms, or outcomes
  • No significant local, state or federal laws, legislation or regulations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.4%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.6%

Avg return

30 days after

36%

23 / 64 earnings

Positive

+10.7%

Q4 2021

Best reaction

-7.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.7%-4.4%-5.5%
Q4 2025+5.7%+4.5%+5.1%
Q3 2025-1.3%+0.6%-1.0%
Q1 2025+0.0%-1.7%-8.6%
Q4 2024-0.6%+1.3%+3.6%
Q3 2024-0.4%-0.7%+0.3%
Q2 2024-5.6%-6.1%-0.3%
Q1 2024-0.7%+0.0%-4.5%
Q4 2023-7.9%-6.6%-9.7%
Q3 2023-2.2%-4.8%-3.3%
Q2 2023-1.8%-2.8%-7.5%
Q1 2023+2.0%+0.3%-6.1%
Q4 2022-0.8%-2.3%-3.6%
Q3 2022+1.0%+5.0%+6.4%
Q2 2022-1.4%-1.9%-10.9%
Q1 2022+3.7%+4.8%+16.7%
Q4 2021+10.7%+14.7%+17.2%
Q3 2021-1.0%-1.0%-3.6%
Q2 2021-0.7%-1.8%-5.2%
Q1 2021+1.2%+2.3%-0.5%
Q4 2020-1.1%-2.7%+7.9%
Q3 2020-1.0%+16.5%+10.1%
Q2 2020+1.3%+2.4%-6.8%
Q1 2020+0.3%-6.4%+1.5%
Q4 2019-1.1%+5.2%-14.9%
Q3 2019-2.1%-3.2%+2.7%
Q2 2019-0.3%-0.1%+1.3%
Q1 2019-1.9%+0.4%-1.0%
Q4 2018+2.0%+0.1%+2.2%
Q3 2018+2.3%+3.1%+0.3%
Q2 2018-3.6%-2.2%+2.5%
Q1 2018-3.1%-2.2%-6.9%
Q4 2017-1.8%-4.7%+1.3%
Q3 2017-0.1%+1.4%+3.5%
Q2 2017+0.5%+0.9%+3.6%
Q1 2017-0.5%+0.8%+3.9%
Q4 2016-2.1%-3.3%-3.5%
Q3 2016-1.5%+0.6%-0.5%
Q2 2016+0.3%-0.8%-7.6%
Q1 2016+4.9%
Q4 2015-5.2%
Q3 2015-0.3%
Q2 2015+1.0%
Q1 2015-3.7%
Q4 2014-2.8%
Q3 2014-0.7%
Q2 2014-0.2%
Q1 2014+0.9%
Q4 2013-1.9%
Q3 2013+0.1%
Q2 2013-1.5%
Q1 2013-0.7%
Q4 2012+3.5%
Q3 2012+0.0%
Q2 2012+0.2%
Q1 2012+0.9%
Q4 2011-0.1%
Q3 2011-2.6%
Q2 2011+2.0%
Q1 2011+0.2%
Q4 2010-0.4%
Q3 2010+1.5%
Q2 2010-1.2%
Q1 2010-0.0%

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