Group 1 - Water utilities are considered appealing due to their defensiveness and long dividend track records amidst broader market volatility [1] - Despite a flat-to-negative performance over the past six months, there are specific companies within the water utility sector that exhibit growth potential [1] - Joseph Jones, a professor with extensive market research experience, emphasizes the importance of portfolio construction from a dividend growth investor's perspective [1]

It has been about a month since the last earnings report for Essential Utilities (WTRG) . Shares have added about 2.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Essential Utilities due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving ...

Group 1 - Essential Utilities (NYSE: WTRG) is a regulated water and natural gas utility serving over 5 million customers across multiple states [1] - The company is currently navigating significant regulatory changes due to the U.S. Environmental Protection Agency (EPA) setting maximum contaminant levels [1] Group 2 - Aseity Research focuses on high-yield income investing combined with tech-driven growth, providing actionable insights on stocks, ETFs, CEFs, and options strategies [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 Or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File number 1-6659 ESSENTIAL UTILITIES, INC. (Exact name of registrant as specified in its charter) Pennsylvania 23-1702594 (St ...

Financial Data and Key Metrics Changes - For the year 2024, the company reported GAAP earnings per share (EPS) of $2.17, an increase from $1.86 in 2023, which includes a gain on sale from Pittsburgh Energy projects [12][39] - Non-GAAP earnings per share for 2024 were approximately $1.97, aligning with the guidance range of $1.96 to $2.00 [12][49] - Operating revenues increased due to rate increases and surcharges, with a total increase of nearly $83 million, primarily from water and gas [41][37] Business Line Data and Key Metrics Changes - The water segment saw an increase in revenue of approximately $51 million, while the gas segment contributed about $32 million to the revenue increase [41] - Operating expenses grew by only 2% year-over-year, reflecting the company's focus on operational efficiency [13][44] - The company completed its capital plan of $1.3 billion, which included significant investments in water quality and gas safety [13][20] Market Data and Key Metrics Changes - The company experienced a decline in natural gas commodity prices year-over-year, positively impacting customer bills [38] - Weather normalization mechanisms were implemented to alleviate revenue volatility due to extreme weather conditions [38][18] - The company reported that it was the strongest performing water stock in 2024, although it expressed disappointment in its overall valuation [27][28] Company Strategy and Development Direction - The company plans to invest nearly $7.8 billion in capital over the next five years, focusing on infrastructure improvements and operational excellence [25][61] - A key theme for 2025 is the adoption of lean practices to enhance operational efficiency [29] - The company is exploring opportunities related to data centers, which could provide growth in its natural gas service territory [32][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment in Pennsylvania, highlighting successful rate cases and a constructive regulatory reputation [16][19] - The company anticipates continued growth in its water customer base at an average annual rate of 2% to 3% due to consolidation opportunities [64] - Management noted that the volatility of earnings associated with unusual weather should be dramatically reduced due to the weather normalization mechanism [60] Other Important Information - The company has a strong pipeline of acquisition opportunities, with six signed asset purchase agreements adding over 210,000 customer equivalents [57][58] - The company is actively engaged in PFAS mitigation efforts, with a capital spend of approximately $450 million planned over four years [20][102] - The company plans to raise approximately $315 million in equity through its multiyear ATM program to support growth initiatives [65] Q&A Session Summary Question: Update on M&A activity and Delcora acquisition - Management indicated that the Delcora acquisition is not expected to close this year and has been taken out of the five-year plan, but they remain committed to it [71][72] Question: Consumer advocate situation in Pennsylvania - Management noted that the acting consumer advocate has similar powers to a confirmed advocate, and they are closely monitoring the timeline for a permanent nomination [80][82] Question: PFAS investment strategy and potential earnings - Management confirmed that the $450 million PFAS investment is expected to be net of proceeds from lawsuits and grants, and they are optimistic about the potential for earnings from their patent-pending technology [102][111] Question: Data center opportunities - Management discussed the potential for various types of deals with data centers, including on-site generation and infrastructure projects that could enhance rate base [90][121]

NYSE LISTED WTRG Full Year 2024 Earnings Call February 27th, 2025 2 Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These fact ...

Core Insights - Essential Utilities Inc. (WTRG) reported fourth-quarter 2024 operating earnings per share (EPS) of 67 cents, exceeding the Zacks Consensus Estimate of 66 cents by 1.5% and showing a 34% increase from the previous year's EPS of 50 cents [1][2] Financial Performance - Total operating revenues reached $604 million, surpassing the Zacks Consensus Estimate of $534 million by 13.2%, with a year-over-year increase of 2.6% [3] - Operating income was $226.6 million, reflecting a 30.3% year-over-year growth, while operating and maintenance expenses rose by 4.2% to $163.5 million [4] - Interest expenses increased by 8.8% to $79.3 million compared to $72.9 million in the prior-year quarter [4] Strategic Initiatives - The company has expanded its operations through strategic acquisitions, adding nearly 129,000 wastewater customers since 2015, and signed seven purchase agreements to acquire additional wastewater systems, expected to add 213,000 retail customers [5] - In 2024, the regulated water segment received rate awards to increase annual revenues by $53.9 million across several states, while the regulated natural gas segment received rate awards to boost revenues by $93.9 million in Kentucky and Pennsylvania [6] Financial Position - As of December 31, 2024, current assets were $485.9 million, down from $492 million a year earlier, and long-term debt increased to $7.36 billion from $6.82 billion [7] - The company invested $1.3 billion in 2024 to enhance its regulated water and natural gas infrastructure [7] Future Outlook - Essential Utilities reaffirmed its 2025 EPS guidance of $2.05-$2.11, with the Zacks Consensus Estimate for EPS at $2.13, indicating potential growth [8] - The company plans to invest $1.4-$1.5 billion in infrastructure in 2025 and a total of $7.88 billion from 2025 to 2029 to improve water and natural gas systems [9]

Financial Performance - Essential Utilities reported a 17% increase in earnings per share to $2.17 for the full year 2024, compared to $1.86 in 2023[1] - The company achieved revenues of $2,086.1 million for 2024, a 1.6% increase from $2,053.8 million in 2023[3] - Operating revenues for Q4 2024 reached $604,383 thousand, a 26% increase from $479,419 thousand in Q4 2023[32] - Net income for Q4 2024 was $184,755 thousand, up 36% from $135,448 thousand in Q4 2023[32] - Basic and diluted net income per common share for Q4 2024 was $0.67, compared to $0.50 in Q4 2023, representing a 34% increase[32] - The company reported an adjusted income of $540,898 thousand for the year ended December 31, 2024[40] Revenue Segments - The regulated water segment generated revenues of $1,221.9 million, reflecting a 5.9% increase compared to $1,153.3 million in 2023[5] - The regulated natural gas segment reported revenues of $843.0 million, down from $863.8 million in 2023, primarily due to lower purchased gas costs[6] Investments and Infrastructure - Essential invested approximately $1.3 billion in infrastructure improvements in 2024, including mitigation of PFAS contamination at 13 sites[15] - The company expects to invest $1.4 to $1.5 billion in infrastructure in 2025 and approximately $7.8 billion from 2025 to 2029[16] - The company has signed purchase agreements for additional water and wastewater systems expected to serve over 210,000 equivalent customers, totaling over $344.0 million[19] Growth Projections - Essential's multi-year earnings guidance indicates a compounded annual growth rate of 5-7% in earnings per share through 2027[3] - The average annual long-term growth rate for the water utility customer base is projected to be between 2-3% for acquisitions and organic growth[32] Equity and Debt - Total equity increased to $6,198,809 thousand in 2024 from $5,896,183 thousand in 2023, reflecting a growth of approximately 5%[42] - Long-term debt, net of debt issuance costs, rose to $7,368,381 thousand in 2024 from $6,826,085 thousand in 2023[42] - The company plans to raise approximately $315 million in equity through the At-The-Market equity program in 2025[32] Environmental Goals - The company aims to reduce Scope 1 and 2 greenhouse gas emissions by 60% by 2035 from its 2019 baseline[22] - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035 from the 2019 baseline[32] Other Notable Events - The company experienced a gain of $91,236 thousand from the sale of non-utility local microgrid and distributed energy projects in Q1 2024[37] - Essential's board declared a quarterly cash dividend of $0.3255 per share, payable on June 2, 2025[9]

Essential Utilities (WTRG) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.52%. A quarter ago, it was expected that this water utility would post earnings of $0.23 per share when it actually produced earnings of $0.25, delivering a surprise of 8.70%.Over the last four quarters, the ...

Core Viewpoint - Essential Utilities (WTRG) has experienced significant selling pressure, resulting in an 8.7% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Stock Performance and Technical Indicators - WTRG is currently in oversold territory with a Relative Strength Index (RSI) reading of 20.88, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound [5]. - The RSI is a momentum oscillator that helps identify whether a stock is oversold, typically when the reading falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Sentiment - Over the last 30 days, the consensus EPS estimate for WTRG has increased by 0.2%, indicating a positive trend in earnings estimate revisions, which often correlates with price appreciation [6]. - WTRG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].