NYSE$NWN

Northwest Natural Holding Company · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a net loss for the second quarter of 2024 due to regulatory lag and increased pension expense, partially offset by customer growth and cost savings.

NW Natural Holdings reported a net loss of $2.8 million, or $0.07 per share, for the second quarter of 2024, compared to a net income of $1.2 million, or $0.03 per share, for the same period in 2023. The decrease was primarily due to regulatory lag from higher depreciation and pension expenses. The company reaffirmed its 2024 earnings guidance in the range of $2.20 to $2.40 per share.

  • Net loss of $2.8 million ($0.07 per share) for Q2 2024, compared to net income of $1.2 million ($0.03 per share) for Q2 2023.
  • Net income of $61.0 million ($1.60 per share) for the first six months of 2024, compared to $72.9 million ($2.03 per share) for the same period in 2023, primarily due to regulatory lag.
  • Added nearly 16,000 gas and water utility connections in the last 12 months, a combined growth rate of 1.8% as of June 30, 2024.
  • Signed Puttman and ICH water acquisition agreement adding 4,200 customers and a strong pipeline of growth opportunities.

Headline financials

Total Revenue

$212M

Previous: $238M-11.0%
EPS

-$0.07

Previous: $0.03-333.3%
Total Meters

876.3K

No prior period
NWN Gas Utility Meters

801.9K

No prior period
NWN Water Utility Meters

74.3K

No prior period
Capital Expenditures

-$199M

Previous: -$145M-37.3%
Free Cash Flow

-$202M

Previous: -$144M-40.5%
Net Income

-$2.79M

Previous: $1.24M-324.0%
Operating Income

$15.7M

Previous: $13.8M+13.5%
Gross Profit

$147M

Previous: $171M-14.2%
Cash & Equivalents

$65.2M

Previous: $138M-52.7%
Total Assets

$4.82B

Previous: $4.54B+6.3%

Revenue & EPS history

NW Natural · Revenue · Quarterly

$212M

Q2 2024-11%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

NW Natural Holdings reaffirmed its 2024 annual earnings guidance in the range of $2.20 to $2.40 per share. This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes, or significant local, state or federal laws, legislation or regulations.

Tailwinds

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

Headwinds

  • Regulatory lag from natural gas distribution segment
  • Substantial investments to provide continued safe and reliable service
  • Elevated investment in technology resulting in higher depreciation expense
  • Increasing operating expenses due to inflationary pressures
  • Renewing multi-year operations and maintenance contracts

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 Q2 2024

Historical avgQ2 2024

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro