NYSE$WTRG

Essential Utilities Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results for Q3 2020, with GAAP earnings of $0.22 per share and adjusted non-GAAP earnings of $0.23 per share.

Essential Utilities reported a net income of $55.7 million, or $0.22 per share, for Q3 2020. Revenues for the quarter were $348.6 million, a 43.1% increase compared to Q3 2019. The company refined its 2020 annual adjusted earnings guidance to the top end of the $1.53 to $1.58 range.

  • Essential reported GAAP earnings of $0.22 per share and adjusted earnings per share of $0.23.
  • Revenues increased by 43.1% to $348.6 million compared to the third quarter of 2019.
  • The company refined its 2020 annual adjusted earnings per share guidance to the top end of the $1.53 to $1.58 range.
  • Essential invested $554.1 million in the first nine months of the year to improve its regulated water and natural gas infrastructure systems.

Headline financials

Total Revenue

$349M

Previous: $244M+43.1%
EPS (adj)

$0.23

Previous: $0.48-52.1%
Capital Expenditures

-$4.02B

Previous: -$402M-899.9%
Free Cash Flow

-$3.97B

Previous: -$314M-1164.1%
Net Income

$55.7M

Previous: $88.5M-37.0%
Operating Income

$105M

Previous: $106M-1.2%
Gross Profit

$349M

Previous: $244M+43.1%
Cash & Equivalents

$8.49M

Previous: $2.03B-99.6%
Total Assets

$13.4B

Previous: $9.34B+43.4%
Stock-Based Comp

$2.13M

Previous: $1.77M+20.4%

Revenue & EPS history

Essential Utilities · Revenue · Quarterly

$349M

Q3 2020+43.1%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Essential Utilities · $345M total across 2 segments · Q3 2020

  • Regulated Water
    $256M+5.3%
  • Regulated Natural Gas
    $88.9M

Forward guidance

Essential Utilities updated its 2020 full-year guidance and expects adjusted income per diluted common share at the top end of the $1.53 to $1.58 range.

Tailwinds

  • Expects adjusted income per diluted common share (non-GAAP) at the top end of the $1.53 to $1.58 range
  • 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
  • Infrastructure investments of approximately $2.8 billion through 2022 in existing operations

Headwinds

  • Guidance is subject to risks and uncertainties including disruptions in the global economy
  • Financial and workforce impacts from the COVID-19 pandemic
  • The continuation of the company’s growth-through-acquisition program
  • General economic business conditions
  • The company’s ability to fund needed infrastructure

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 Q3 2020

Historical avgQ3 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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