NYSE$WTRG

Essential Utilities Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Essential closed on Peoples acquisition, secured financing, and reported increased revenue due to the natural gas utility contribution and rate increases in the regulated water segment.

Essential Utilities reported a significant milestone in Q1 2020, closing the Peoples acquisition and changing its name. The company provided continuous service amidst the COVID-19 pandemic and reported increased revenues and adjusted income per share.

  • Essential closed the acquisition of Peoples, a natural gas distribution utility, expanding its service footprint.
  • The company changed its name from Aqua America Inc. to Essential Utilities Inc.
  • Essential filed the DELCORA wastewater acquisition application.
  • First quarter revenues increased by 27.1 percent, driven by the natural gas utility and rate increases in the regulated water segment.

Headline financials

Total Revenue

$256M

Previous: $201M+27.1%
EPS (adj)

$0.60

Previous: $0.28+114.3%
Capital Expenditures

-$3.56B

Previous: -$134M-2555.1%
Free Cash Flow

-$3.51B

Previous: -$117M-2893.9%
Net Income

$51.8M

Previous: $16.9M+206.0%
Operating Income

$73.5M

Previous: $67.4M+9.0%
Gross Profit

$256M

Previous: $201M+27.1%
Cash & Equivalents

$31.8M

Previous: $4.05M+685.8%
Total Assets

$12.9B

Previous: $7.08B+82.6%
Stock-Based Comp

$1.69M

Previous: $1.93M-12.5%

Revenue & EPS history

Essential Utilities · Revenue · Quarterly

$256M

Q1 2020+27.1%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Essential Utilities · $255M total across 2 segments · Q1 2020

  • Regulated Water
    $216M+8.0%
  • Regulated Natural Gas
    $38.5M

Forward guidance

Essential Utilities reaffirmed its 2020 full-year guidance, including adjusted income per diluted common share of $1.53 to $1.58 and infrastructure investments in both regulated water and natural gas segments.

Tailwinds

  • Adjusted income per diluted common share (non-GAAP) of $1.53 to $1.58
  • Earnings growth CAGR of 5 to 7 percent for 2019 through 2022
  • Regulated water segment infrastructure investments of approximately $550 million in 2020
  • Regulated natural gas segment infrastructure investments of approximately $400 million in 2020
  • Infrastructure investments of approximately $2.8 billion through 2022

Headwinds

  • The company is monitoring the global outbreak of COVID-19 and will update guidance impacts from the outbreak in the future if needed.
  • Guidance is subject to risks and uncertainties, including disruptions in the global economy.
  • The spread of the COVID-19 virus resulting in business disruptions.
  • The company's ability to fund needed infrastructure.
  • Housing and customer growth trends; unfavorable weather conditions.

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 2020

Historical avgQ1 2020

-0.8%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.0%

Avg return

30 days after

43%

30 / 69 earnings

Positive

+4.9%

Q3 2024

Best reaction

-9.5%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+1.2%-0.5%
Q4 2025-0.2%+0.5%+1.1%
Q3 2025+3.3%+2.2%-1.0%
Q1 2025-4.1%-4.7%-6.5%
Q4 2024+0.2%+3.3%+4.7%
Q3 2024+4.9%+3.7%+2.4%
Q2 2024-4.9%-4.8%-5.2%
Q1 2024+1.5%+3.9%+1.4%
Q4 2023-3.4%-4.3%+0.7%
Q3 2023-2.2%-6.0%+1.5%
Q2 2023-0.4%-3.0%-12.6%
Q1 2023-1.5%-1.3%-3.2%
Q4 2022-3.6%-5.4%-4.2%
Q3 2022+1.1%+5.3%+8.8%
Q2 2022-0.1%-1.7%-4.7%
Q1 2022-5.3%+1.7%+4.8%
Q4 2021+2.8%+3.8%+10.0%
Q3 2021+0.4%+1.2%+0.3%
Q2 2021+1.4%-0.3%-0.8%
Q1 2021-1.4%-0.4%+0.9%
Q4 2020-3.4%-3.9%-1.3%
Q3 2020-1.5%+2.9%+14.8%
Q2 2020+1.0%+6.0%-7.8%
Q1 2020-3.4%-4.3%+8.8%
Q4 2019-8.1%-9.9%-19.8%
Q3 2019-0.9%-2.5%+0.4%
Q2 2019+2.8%+5.2%+9.6%
Q1 2019-1.3%-1.9%+2.4%
Q4 2018-0.3%+2.0%+1.7%
Q3 2018-1.0%+0.6%+4.0%
Q2 2018-0.6%+1.2%+0.6%
Q1 2018-3.3%-1.8%-4.6%
Q4 2017-2.3%-7.1%-2.7%
Q3 2017+0.0%+1.7%+7.3%
Q2 2017-0.2%+0.9%-0.4%
Q1 2017-3.9%-3.1%+0.6%
Q4 2016+1.2%+3.3%+4.8%
Q3 2016-3.0%-5.5%-3.5%
Q2 2016-2.8%-4.8%-12.7%
Q1 2016+0.9%
Q4 2015-0.4%
Q3 2015+2.2%
Q2 2015+1.5%
Q1 2015-2.2%
Q4 2014-0.0%
Q3 2014+0.9%
Q2 2014+1.8%
Q1 2014+0.1%
Q4 2013-0.3%
Q3 2013-0.1%
Q2 2013-5.1%
Q1 2013+0.5%
Q4 2012+0.3%
Q3 2012-0.4%
Q2 2012+0.4%
Q1 2012+0.3%
Q4 2008-2.4%
Q4 2011-2.4%
Q4 2007-2.4%
Q4 2009-2.4%
Q4 2010-2.4%
Q3 2011+0.3%
Q2 2011-9.5%
Q1 2010+2.5%
Q1 2011+1.5%
Q3 2010+1.3%
Q3 2009+1.3%
Q2 2009+0.9%
Q2 2010+0.9%

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