NYSE$WTRG

Essential Utilities Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong financial results, driven by the inclusion of Peoples Gas and growth in the regulated water segment.

Essential Utilities reported a strong first quarter, marked by a significant increase in revenues and net income, primarily due to the inclusion of Peoples Gas results for the full period and growth in the regulated water segment. The company reaffirmed its annual earnings guidance and continues to invest in infrastructure improvements.

  • Net income increased to $183.7 million, or $0.72 per share, compared to $51.8 million, or $0.20 per share in the first quarter of 2020.
  • Revenues rose to $583.6 million, a 128.3% increase from $255.6 million in the first quarter of 2020.
  • The regulated water segment reported revenues of $228.4 million, up 5.6% from $216.2 million in the first quarter of 2020.
  • Essential invested approximately $178 million in infrastructure improvements during the quarter and remains on track to invest $1 billion in 2021.

Headline financials

Total Revenue

$584M

Previous: $256M+128.3%
EPS (adj)

$0.72

Previous: $0.60+20.0%
Capital Expenditures

-$178M

Previous: -$3.56B+95.0%
Free Cash Flow

$5.68M

Previous: -$3.51B+100.2%
Net Income

$184M

Previous: $51.8M+254.7%
Operating Income

$232M

Previous: $73.5M+216.1%
Gross Profit

$584M

Previous: $256M+128.3%
Cash & Equivalents

$18M

Previous: $31.8M-43.3%
Total Assets

$13.8B

Previous: $12.9B+6.9%
Stock-Based Comp

$2.72M

Previous: $1.69M+61.4%

Revenue & EPS history

Essential Utilities · Revenue · Quarterly

$584M

Q1 2021+128.3%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Essential Utilities · $572M total across 2 segments · Q1 2021

  • Regulated Natural Gas
    $343M+791.2%
  • Regulated Water
    $228M+5.6%

Forward guidance

Essential Utilities reaffirmed its 2021 full-year guidance, including net income per diluted common share of $1.64 to $1.69, earnings per share growth CAGR of 5 to 7% for 2020 through 2023, and significant investments in regulated water and natural gas segments.

Tailwinds

  • Net income per diluted common share of $1.64 to $1.69
  • Earnings per share growth CAGR of 5 to 7% for 2020 through 2023
  • Regulated water segment infrastructure investments of approximately $550 million in 2021
  • Regulated natural gas segment infrastructure investments of approximately $450 million in 2021
  • Infrastructure investments of approximately $3 billion through 2023

Headwinds

  • Guidance is subject to risks and uncertainties.
  • Disruptions in the global economy.
  • Financial and workforce impacts from the COVID-19 pandemic.
  • Changes in regulations or regulatory treatment.
  • Availability and access to capital.

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 2021

Historical avgQ1 2021

-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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