Financial Performance - Reported a net loss of $27.2 million ($0.71 per share) for Q3 2024, compared to a net loss of $23.7 million ($0.65 per share) in Q3 2023[1] - Year-to-date net income for the first nine months of 2024 was $33.9 million ($0.88 per share), down from $49.2 million ($1.37 per share) in the same period of 2023, primarily due to regulatory lag[1] - Generated $219.7 million in operating cash flows in the first nine months of 2024, down from $301.5 million in the same period of 2023[22] - Operating revenues for the three months ended September 30, 2024, were $136,934 thousand, a decrease of 3% compared to $141,479 thousand in 2023[36] - Total operating expenses decreased by 2% to $156,266 thousand from $159,056 thousand year-over-year[36] - Net loss for the three months ended September 30, 2024, was $(27,167) thousand, compared to a net loss of $(23,687) thousand in 2023, reflecting a 15% increase in losses[36] - Average diluted shares outstanding increased to 38,394 thousand from 36,214 thousand year-over-year[36] - Diluted loss per share was $(0.71) for the three months ended September 30, 2024, compared to $(0.65) in 2023[36] - Net income for the nine months ended September 30, 2024, was $33.9 million, down 31% from $49.2 million in the same period of 2023[39] - Operating cash flow decreased from $301.5 million in 2023 to $219.7 million in 2024, representing a decline of approximately 27%[39] Growth and Expansion - Added nearly 17,000 gas and water utility connections in the last 12 months, achieving a combined growth rate of 1.9% as of September 30, 2024[1] - Invested $294 million in gas and water systems in the first nine months of 2024 to enhance growth and reliability[1] - Closed the acquisition of Puttman/ICH water, expanding customer base and growth opportunities in Oregon, Idaho, and California[3] - Forward-looking statements indicate plans for continued expansion of service territories and investments in renewable natural gas and hydrogen projects[29][30] Guidance and Projections - Reaffirmed 2024 GAAP EPS guidance of $1.94 to $2.14, or $2.20 to $2.40 on a non-GAAP Adjusted Basis[6] - Long-term EPS growth rate target reaffirmed at 4% to 6% compounded annually from 2022 through 2027[7] Dividends and Shareholder Returns - Declared a quarterly dividend of $0.49 per share, marking the 69th consecutive year of dividend increases[1] Operational Metrics - Total volumes sold and delivered for the three months ended September 30, 2024, were 157,758 therms, a slight decrease from 158,694 therms in 2023[36] - Residential and commercial sales revenues decreased to $90,850 thousand from $98,327 thousand year-over-year, a decline of 5%[36] - Industrial sales and transportation revenues decreased to $17,504 thousand from $20,828 thousand, reflecting a 16% decline[36] Assets and Liabilities - Total assets decreased from $466.5 billion in September 2023 to $494.4 billion in September 2024, reflecting a change of approximately 6%[37] - Cash and cash equivalents dropped significantly from $156.6 million in September 2023 to $35.0 million in September 2024, a decrease of about 78%[39] - Total current liabilities decreased from $590.1 million in September 2023 to $567.4 million in September 2024, a decrease of about 4%[37] - Regulatory assets increased from $108.5 million in September 2023 to $136.3 million in September 2024, an increase of approximately 26%[37] - The company reported a decrease in accounts receivable from $182.3 million in 2023 to $130.7 million in 2024, a decline of about 28%[39] - Total equity increased from $1.2 billion in September 2023 to $1.4 billion in September 2024, reflecting an increase of approximately 15%[37] Company Recognition and Commitment - NW Natural Holdings was recognized as one of the World's Most Ethical Companies for the third consecutive year in 2024[25] - The company emphasizes its commitment to safety, environmental stewardship, and the energy transition[25] Market Performance - The market closing price at the end of the period was $40.82, up from $38.16 in the previous year[36] - Common stock equity increased to 43.9% from 42.0% year-over-year, indicating improved capital structure[36] Research and Development - The company is investing $150 million in R&D for new technology aimed at enhancing user experience[9] Customer Metrics - Customer retention rate improved to 85%, up from 80% in the previous quarter[9] Marketing and Strategy - The company plans to implement a new marketing strategy with a budget increase of 25% to drive user engagement[9]

Core Insights - The article emphasizes the importance of dividend-paying stocks for steady wealth accumulation during financial journeys [1] - The author has extensive experience in investment advising, corporate management, and entrepreneurship, which enhances the credibility of the insights provided [1] Company and Industry Summary - Guiding Mast Investments focuses on timely selections of dividend-paying stocks, aiming to assist investors in wealth accumulation [1] - The author has a background in corporate management at Georgia-Pacific Corp, which adds depth to the investment analysis [1] - The author has published books on investment strategies, indicating a commitment to educating investors about overlooked stocks and dividend reinvestment plans [1]

deepblue4you Thesis Northwest Natural Holding Company (NYSE:NWN) has been around forever and is known for keeping the Pacific Northwest powered with natural gas and water services. While they've bumped up their dividends for 68 years straight, which is impressive, my analysis argues that their growth doesn't stack up against the broader market. And while they're making moves in clean energy and water recycling, the financials-like revenue and earnings-aren't anything to write home about. Bottom line: if you ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fu ...

Northwest Natural Holding Company (NWN) benefits from its investments in infrastructure upgrade, customer base expansion and energy transition plans. Given its earnings growth opportunities and better debt management, NWN makes for a solid investment option in the utility sector. Let's focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment. NWN's Growth Projections & Surprise History The Zacks Consensus Estimate for 2024 earnings per share (EPS) has moved up 1 ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-a ...

Industry Overview - The utilities sector is recognized for providing a steady source of income through dividends, making it a preferred choice for investors during economic downturns [1] - Utility stocks are classified as defensive stocks, showing minimal impact from market volatility, and have historically performed well during financial crises, such as the 2008 crisis [2] Current Economic Context - The market anticipates interest rate cuts in September, marking a potential shift in monetary policy after a tightening period that began in early 2022, with expectations of at least two rate cuts this year due to signs of economic slowdown [3] - Inflation has significantly decreased recently, and while the jobs market has slowed, it remains robust, suggesting that once the Federal Reserve initiates rate cuts, they may occur rapidly [4] Performance Metrics - The utilities sector has performed well in 2024, with the S&P 500 Select Sector SPDR (XLU) increasing by 16.7% year-to-date as of July 31, 2024, indicating strong investor interest in utility stocks during macroeconomic downturns [4] Investment Considerations - Utility stocks are typically viewed as long-term buy-and-hold investments due to their regular dividend declarations and generally higher dividend yields compared to other equities, providing stability and growth potential [5] Company Highlights - UGI Corporation (UGI) is an integrated gas distributor with an expected earnings growth rate of 2.8% for the current year and holds a Zacks Rank 2 with a VGM Score of B [7] - Northwest Natural Holding Company (NWN) focuses on natural gas distribution and has an expected earnings growth rate of 2.5% for the next year, with a 26.3% improvement in the Zacks Consensus Estimate over the past 60 days, also holding a Zacks Rank 2 and a VGM Score of B [8] - Veolia Environnement SA (VEOEY) provides global water, waste, and energy management solutions, with an expected earnings growth rate of 207% for the current year and a slight improvement in the Zacks Consensus Estimate, holding a Zacks Rank 1 and a VGM Score of B [9]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they be ...

Northwest Natural (NWN) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 41.67%. A quarter ago, it was expected that this natural gas distributor would post earnings of $1.82 per share when it actually produced earnings of $1.69, delivering a surprise of -7.14%. Over the last four quarter ...

Core Viewpoint - Northwest Natural Holding Company is a utility company that primarily provides natural gas services and is often overlooked by investors who favor electric utilities, despite its strong market position in natural gas and water services [2][3][4]. Company Overview - Northwest Natural Holding Company operates primarily in Oregon and Washington, serving approximately 2 million people through its natural gas utility, which accounts for 96.40% of its first-quarter 2024 revenue [6][7]. - The company has a long history of over 165 years and is committed to safety, environmental stewardship, and community care [6]. Financial Performance - The company's share price has declined by 7.67% since the last analysis, underperforming both the S&P 500 Index and the U.S. Utilities ETF [3][4]. - Despite the share price decline, the dividend yield has increased to 5.40%, making it attractive for income-focused investors [4][18]. - In the first quarter of 2024, the natural gas distribution segment's net income decreased by $6.2 million due to higher operating expenses and warmer weather, which negatively impacted natural gas consumption [9][10]. Customer Mix and Consumption Patterns - The majority of the company's customers are residential, which leads to revenue fluctuations based on seasonal demand for heating [9]. - The trend towards remote work may benefit the company as residential consumption of natural gas could increase while commercial consumption decreases [9]. Weather Impact - Warmer-than-normal winter temperatures negatively affected the company's performance in the first quarter of 2024, but forecasts suggest a colder winter ahead, which could boost revenue [9][10]. Debt and Financial Structure - As of March 31, 2024, the company has a net debt-to-equity ratio of 1.25, indicating a moderate reliance on debt compared to peers [13][17]. - Interest expenses have stabilized, with the company paying between $19 million to $21 million per quarter, a significant increase from pre-pandemic levels but no longer exhibiting rapid growth [11][17]. Dividend Sustainability - The company has maintained its quarterly dividend at $0.48750 per share, supported by an operating cash flow of $228.1 million against dividend payments of $68.6 million [18][19]. Valuation - Northwest Natural Holding has a forward price-to-earnings ratio of 15.87, which is reasonable compared to its peers, but the company faces potential earnings pressure due to increased depreciation expenses [20][21]. - The stock appears fairly valued, with no immediate catalysts for price appreciation, making it more suitable for income-focused investors rather than growth-oriented ones [21].