NYSE$WTRG

Essential Utilities Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported strong financial results for Q2 2020, driven by the inclusion of Peoples and growth in the regulated water segment.

Essential Utilities reported a strong second quarter with net income of $74.6 million, or $0.29 per share. Revenues increased by 75.6% to $384.5 million, driven by the acquisition of Peoples and growth in the regulated water segment. The company reaffirmed its annual earnings guidance and declared a 7% dividend increase.

  • Net income reached $74.6 million, or $0.29 per share.
  • Revenues increased by 75.6% to $384.5 million.
  • Residential water consumption was up year over year, offsetting declines in other customer classes.
  • The board of directors declared a 7% increase to the quarterly dividend.

Headline financials

Total Revenue

$384M

Previous: $219M+75.6%
EPS (adj)

$0.29

Previous: $0.37-21.6%
Capital Expenditures

-$3.76B

Previous: -$270M-1294.2%
Free Cash Flow

-$3.69B

Previous: -$215M-1615.9%
Net Income

$74.6M

Previous: $54.9M+35.9%
Operating Income

$123M

Previous: $80.9M+52.1%
Gross Profit

$384M

Previous: $219M+75.6%
Cash & Equivalents

$7.23M

Previous: $1.97B-99.6%
Total Assets

$13B

Previous: $9.18B+41.9%
Stock-Based Comp

$2.02M

Previous: $2.13M-5.1%

Revenue & EPS history

Essential Utilities · Revenue · Quarterly

$384M

Q2 2020+75.6%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Essential Utilities · $381M total across 2 segments · Q2 2020

  • Regulated Water
    $234M+7.4%
  • Regulated Natural Gas
    $147M

Forward guidance

Essential reaffirmed 2020 guidance

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 on full-year basis (adjusted to include capital invested in 2020 prior to Essential’s ownership)
  • Infrastructure investments of approximately $2.8 billion through 2022 in existing operations to rehabilitate and strengthen water, wastewater, and natural gas systems (including regulated natural gas segment capital invested in 2020 prior to Essential’s ownership)

Headwinds

  • Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
  • Disruptions in the global economy
  • Financial and workforce impacts from the COVID-19 virus
  • General economic business conditions
  • Housing and customer growth trends

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 2020

Historical avgQ2 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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