WTRG Earnings Prediction
The chart below shows how WTRG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WTRG sees a +0.31% change in stock price 10 days leading up to the earnings, and a +1.41% change 10 days following the report. On the earnings day itself, the stock moves by -0.92%. This data can give you a slight idea of what to expect for the next quarter's release.
WTRG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
435.25M
5.84%
0.20%
Gross Margin
74.34%
-0.95%
4.16%
Operating Margin
35.63%
6.64%
6.55%
Net Margin
15.95%
-18.08%
-8.07%
EPS
0.25
-16.67%
-10.71%
No Data Available
WTRG Earnings Analysis
Essential Utilities, Inc. Corporation (WTRG.N) Earnings Conference Call
Positive
Earnings Per Share Success: 1. Strong EPS Performance: Essential Utilities reported earnings per share of $0.25 for Q3 2024, exceeding expectations and demonstrating resilience despite challenges.
Revenue Increase Analysis: 2. Significant Revenue Growth: The company achieved revenues of $435.3 million in Q3 2024, a 6% increase from $411.3 million in Q3 2023, driven by rate increases and customer growth.
Rate Case Approval Impact: 3. Major Rate Case Approvals: The Pennsylvania PUC approved a rate case for Peoples Natural Gas, resulting in an annualized revenue increase of $93 million, enhancing financial stability for the company.
Water Rate Settlement Success: 4. Successful Water Rate Settlement: A settlement in the Aqua Pennsylvania rate case is expected to yield an annualized revenue increase of $73 million, effective February 2025, bolstering the company's financial outlook.
Capital Investment Strategy: 5. Robust Capital Investment Plans: Essential Utilities plans to invest approximately $7.8 billion in infrastructure improvements over the next five years, supporting long-term growth and operational efficiency.
Negative
Declining Earnings Per Share: 1. Declining EPS: Earnings per share decreased to $0.25 in Q3 2024 from $0.30 in Q3 2023, reflecting a drop of approximately 17%.
Rising Operating Expenses: 2. Increased Operating Costs: The company anticipates higher operating costs in 2025 due to increased expenses for purchased power and chemicals related to PFAS mitigation, which could negatively impact profitability.
Rate Increase Appeal: 3. Regulatory Appeal: The Office of the Consumer Advocate has appealed the Pennsylvania Public Utility Commission's approval of a $93 million rate increase, creating uncertainty around future revenue.
Decline in Gas Sales: 4. Lower Natural Gas Sales: The company experienced a decline in natural gas sales due to warmer-than-normal weather, which negatively impacted revenue generation in the gas segment.
DELCORA Transaction Impact: 5. Exclusion of DELCORA: The company's long-term EPS guidance excludes any contributions from the DELCORA transaction, indicating potential lost revenue opportunities from this acquisition.
WTRG FAQs
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WTRG Earning Call Sentiment
Essential Utilities, Inc. (WTRG) Q3 2024 Earnings Conference Call Transcript
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WTRG.N
1.14%Positive
The earnings call presents mixed signals. Financial performance shows a decline in EPS but a rise in revenue, indicating mixed sentiment. The hydrogen partnership is a positive catalyst, but the equity raise and delayed DELCORA transaction introduce risks. The Q&A session highlights management's unclear responses on key issues, adding uncertainty. Strong capital investments and shareholder return plans are positives, but economic challenges like inflation and interest rates are negatives. Without market cap details, a neutral prediction (-2% to 2%) is reasonable, considering both positive growth strategies and potential financial headwinds.
