GWRS Earnings Prediction
The chart below shows how GWRS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GWRS sees a +2.25% change in stock price 10 days leading up to the earnings, and a -0.20% change 10 days following the report. On the earnings day itself, the stock moves by -0.62%. This data can give you a slight idea of what to expect for the next quarter's release.
GWRS Key Earning Data
2024/Q4
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GWRS Earnings Analysis
Global Water Resources Inc Corporation (GWRS.O) Earnings Conference Call
Positive
Service Connections Growth: Total active service connections increased 4.4% to 64,520 as of December 30, 2024, from the twelve months prior.
Infrastructure Investment: In 2024, the company invested $32.3 million into infrastructure improvements and existing utilities to provide safe and reliable service.
Strong Compliance Record: The company had zero significant compliance events in 2024, continuing a strong compliance record for nearly eight years.
Building Permit Surge: The single-family dwelling unit market in the Phoenix area saw a 20.3% increase in building permits from 2023 to 2024, indicating strong demand for housing.
Multifamily Housing Permit Surge: Multifamily housing unit permits in the city of Maricopa increased by 88.7% in 2024 compared to 2023, reflecting a shift towards high-density living.
Record Industrial Investment: Arizona experienced a record $50 billion in industrial economic development investment in 2024, indicating a booming economy.
Proposed Rate Increases: The company has proposed over $7.5 million in rate increases to address cost increases and significant investments made over the years.
Strong Growth Metrics: From 2019 to 2024, the company grew active connections by 40.8%, revenue by 48.4%, and EPS by 119%, showcasing strong growth despite economic challenges.
EBITDA Improvement: Adjusted EBITDA increased by 5.2% to $26.7 million in 2024 compared to 2023, indicating improved operational performance.
Asset Acquisition Approval: The Arizona Corporation Commission approved the acquisition of City of Tucson assets, increasing customer connections from 5,000 to 7,000, enhancing economies of scale.
Negative
Revenue Decline Analysis: Total revenue for 2024 was $52.7 million, which was down 0.6% compared to 2023, primarily due to a decrease in revenue from Infra (ICFA’s) that did not recur in 2024.
Operating Expenses Increase: Operating expenses for 2024 increased by approximately $2.6 million or 6.3%, with notable increases in depreciation and amortization, operating and maintenance costs, and general and administrative expenses.
Net Income Decline: Net income for 2024 was $5.8 million or $0.24 per diluted share, down from $8 million or $0.33 per diluted share in 2023, indicating a decline in profitability.
Earnings Growth Challenges: The company is facing high inflation and other cost drivers that are impacting earnings growth, necessitating new rates to address cost increases and significant investments made since the last rate case in 2019.
Rate Increase Proposal: The proposed rate increase requests approximately $6.5 million of new revenue, which is necessary due to inflation and continued capital investment, indicating ongoing financial pressures.
Revenue Decline Challenges: Despite a 4.4% increase in active service connections, the overall revenue decline suggests challenges in maintaining revenue growth amidst rising costs.
GWRS FAQs
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GWRS Earning Call Sentiment
Global Water Resources, Inc. (NASDAQ:GWRS) Q4 2024 Earnings Call Transcript
GWRS.O
0.49%Positive
The earnings call presents a mixed picture: while there are positive indicators such as increased customer connections and EPS growth, there are also concerns like declining total revenue and net income, regulatory risks, and supply chain challenges. The Q&A session revealed some uncertainties, particularly regarding formula rates and project visibility with Procter and Gamble. Given these factors, the stock price is likely to remain stable, resulting in a neutral prediction for the next two weeks.
