NYSE$WTRG

Essential Utilities Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Essential Utilities reported strong financial results for Q4 2020, driven by the Peoples acquisition and growth in the regulated water segment.

Essential Utilities reported a significant increase in revenues for the fourth quarter of 2020, primarily due to the acquisition of Peoples and growth in the regulated water segment. Net income also increased compared to the same period in the previous year.

  • Revenues increased by 109.7% to $474.0 million compared to Q4 2019.
  • The Peoples acquisition contributed $240.6 million to revenue growth.
  • Net income increased to $102.7 million, or $0.40 per share, compared to $64.2 million, or $0.28 per share, in Q4 2019.
  • Adjusted net income was $116.2 million, or $0.46 per share, after accounting for transaction-related gas rate credits.

Headline financials

Total Revenue

$474M

Previous: $226M+109.7%
EPS (adj)

$0.46

Previous: $0.34+35.3%
Net Income

$103M

Previous: $64.2M+60.0%
Operating Income

$133M

Previous: $85.3M+55.7%
Gross Profit

$224M

Previous: $141M+59.2%
Cash & Equivalents

$4.83M

Previous: $1.87B-99.7%
Total Assets

$13.7B

Previous: $9.36B+46.4%
Stock-Based Comp

$2.32M

Previous: $1.54M+50.8%

Revenue & EPS history

Essential Utilities · Revenue · Quarterly

$474M

Q4 2020+109.7%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Essential Utilities · $241M total across 1 segment · Q4 2020

  • Regulated Natural Gas
    $241M

Forward guidance

Essential Utilities provided full-year 2021 guidance, including net income per diluted common share of $1.64 to $1.69.

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 to rehabilitate and strengthen water, wastewater and natural gas systems

Headwinds

  • Essential continues to monitor the effects of the COVID-19 pandemic on its customers, employees and the business and will update guidance impacts from the pandemic in the future if needed.
  • 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.
  • Essential Utilities does not guarantee future results of any kind.
  • Average annual regulated water segment customer (or equivalent dwelling units) growth of between 2 and 3% from acquisitions and organic customer growth
  • Gas customer count stable for 2021

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 Q4 2020

Historical avgQ4 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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