分组1 - Essential Utilities reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.73 per share a year ago, representing an earnings surprise of 28.75% [1] - The company posted revenues of $783.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 13.34%, compared to year-ago revenues of $612.07 million [2] - Essential Utilities shares have increased approximately 12.2% since the beginning of the year, while the S&P 500 has declined by 3.8% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $468.99 million, and for the current fiscal year, it is $2.10 on revenues of $2.3 billion [7] - The Utility - Water Supply industry is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] 分组3 - The estimate revisions trend for Essential Utilities is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Wall Street expects a year-over-year increase in earnings on higher revenues when Essential Utilities (WTRG) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 1 ...

Core Viewpoint - Essential Utilities (WTRG) has consistently beaten earnings estimates and is well-positioned for future earnings growth, particularly with its upcoming quarterly report expected on May 12, 2025 [1][8]. Earnings Performance - In the most recent quarter, Essential Utilities reported earnings of $0.67 per share, surpassing the expected $0.66 per share, resulting in a surprise of 1.52% [2]. - For the previous quarter, the company reported $0.25 per share against an expectation of $0.23 per share, achieving a surprise of 8.70% [2]. Earnings Estimates and Predictions - Estimates for Essential Utilities have been trending higher, influenced by its history of earnings surprises [5]. - The company currently has a positive Earnings ESP (Expected Surprise Prediction) of +0.63%, indicating increased analyst optimism regarding its near-term earnings potential [8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9]. Importance of Earnings ESP - Companies that beat consensus EPS estimates may not always see their stock prices rise, while some may maintain their value even after missing estimates [10]. - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [10].

Core Viewpoint - The utility sector is viewed as a safe investment during economic turbulence, providing essential services that consumers prioritize even in difficult times [1][7][8]. Group 1: Definition and Characteristics of Utility Stocks - Utility stocks are companies primarily involved in distributing essential services such as electricity, gas, and water [5][6]. - The Global Industry Classification Standard (GICS) categorizes the utility sector to include electric, gas, and water utilities, as well as independent power producers and energy traders [6]. - Utility companies exhibit low economic sensitivity, generating stable revenues and profits, and are known for their substantial dividends [8][9]. Group 2: Investment Appeal - Investors are drawn to utility stocks due to their "stickiness" in revenues, similar to healthcare and consumer staples, making them defensive stocks [7][8]. - Utilities are often among the best-yielding market sectors, providing safety and potential upside during market downturns [9]. - The sector's stability allows for gradual rate increases, although growth is typically capped at low single-digit rates [11]. Group 3: Recent Trends and Opportunities - The rise of artificial intelligence (AI) is expected to significantly increase power usage over the next decade, presenting a unique growth opportunity for utility companies [12][13]. - This trend may enable utilities to enhance their business results in a way that has not been seen before [13]. Group 4: Criteria for Selecting Utility Stocks - A quality screen for selecting utility stocks includes companies within the S&P Composite 1500, with a long-term estimated earnings-per-share growth rate of at least 5% [15]. - Stocks should have a dividend yield of at least 2.5%, with a history of growing dividends by at least 5% over the past year [16][17]. - Companies should have at least five covering analysts and a consensus Buy rating of 2.5 or less on S&P Global Market Intelligence's ratings scale [18][19]. Group 5: Recommended Utility Stocks - Recommended utility stocks include: - IDACORP (IDA): 2.9% yield, 5.5% estimated annual dividend growth, 8.3% long-term EPS growth, consensus rating 1.75 [19]. - NiSource (NI): 2.8% yield, 6.8% estimated annual dividend growth, 8.0% long-term EPS growth, consensus rating 1.53 [19]. - DTE Energy (DTE): 3.1% yield, 6.9% estimated annual dividend growth, 8.0% long-term EPS growth, consensus rating 2.05 [19]. - New Jersey Resources (NJR): 3.6% yield, 5.4% estimated annual dividend growth, 7.6% long-term EPS growth, consensus rating 2.22 [19]. - CMS Energy (CMS): 2.9% yield, 5.8% estimated annual dividend growth, 7.3% long-term EPS growth, consensus rating 2.21 [19]. - Sempra (SRE): 3.7% yield, 5.6% estimated annual dividend growth, 7.0% long-term EPS growth, consensus rating 2.11 [19]. - Ameren (AEE): 2.6% yield, 6.3% estimated annual dividend growth, 6.9% long-term EPS growth, consensus rating 2.24 [19]. - Public Service Enterprise Group (PEG): 3.1% yield, 5.7% estimated annual dividend growth, 6.6% long-term EPS growth, consensus rating 2.35 [19]. - Essential Utilities (WTRG): 3.2% yield, 6.6% estimated annual dividend growth, 6.5% long-term EPS growth, consensus rating 1.46 [19]. - FirstEnergy (FE): 4.1% yield, 5.6% estimated annual dividend growth, 5.7% long-term EPS growth, consensus rating 2.39 [20].

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]

Customer Base and Revenue - Essential Utilities serves approximately 5.5 million people across multiple states, with Aqua Pennsylvania accounting for about 55% of operating revenues in 2024[14]. - The company reported consolidated operating revenues of $2,086,113,000 for the year ended December 31, 2024, with the Regulated Water segment contributing 58.6% and the Regulated Natural Gas segment contributing 40.4%[17]. - In 2024, residential water customers represented approximately 67% of total water and wastewater revenues, while residential gas customers accounted for 24.2% of natural gas revenues[19]. - The utility customer growth rate was 0.6% in 2024, with an increase of 11,845 customers, primarily due to acquisitions and organic growth[23]. - The company completed the sale of its regulated natural gas utility assets in West Virginia for approximately $39,965,000, representing about 2% of its regulated natural gas customers[16]. Investments and Capital Expenditures - Essential Utilities plans to invest approximately $7.8 billion from 2025 through 2029 to improve water and natural gas systems and meet compliance requirements[29]. - The company estimates capital expenditures of approximately $104 million, representing less than 3% of expected total water and wastewater capital expenditures over the next five years (2025-2029) to address environmental compliance issues[69]. - The company anticipates an investment of at least $450 million in capital expenditures to install additional treatment facilities to comply with the final National Primary Drinking Water Regulation (NPDWR) by 2029[72]. - The company has approximately $39 million budgeted for capital improvements related to dam safety between 2025 and 2029[78]. - The company has budgeted for ongoing infrastructure improvements to comply with environmental regulations, including those related to PFAS and lead pipe replacements[69][81]. Environmental and Regulatory Compliance - The company is committed to integrating environmental, health, and safety requirements into all operational activities, adhering to applicable regulatory standards[67]. - The company is actively involved in legal actions against PFAS manufacturers to ensure accountability for contamination of public water supply systems[75]. - The company is subject to stringent regulations under the Safe Drinking Water Act and the Clean Water Act, ensuring compliance with national quality standards for drinking water and wastewater discharges[68]. - The fair market value legislation in Pennsylvania encourages consolidation in the water and wastewater industry, providing municipalities with options for exiting the business[53]. - The company has a program to evaluate changes in water sources to prevent lead leaching, focusing on identifying and removing lead service lines[170]. Operational Efficiency and Challenges - The company aims to pursue acquisitions of government-owned and regulated water and wastewater systems to expand its customer base and service areas[24]. - The company completed 12 acquisitions of water or wastewater utilities or similar assets over the three-year period ending December 31, 2024[28]. - The integration of acquisitions is complex and may require significant management resources, potentially affecting operational efficiency[189]. - The company faces risks related to capital expenditures, which may be limited if sufficient capital cannot be obtained, potentially affecting earnings growth and compliance with regulations[178]. - The company relies on third-party suppliers for essential goods and services, and disruptions could harm operations and financial results[147]. Financial Performance and Risks - The company's aggregate long-term and short-term debt balance was $7,745,638,000 as of December 31, 2024[176]. - The company faces risks from general economic downturns, which may lead to declines in asset market values and increased cash contributions to pension plans[113]. - Inflation and higher interest rates have negatively impacted the company's financial condition, with operating and capital costs rising significantly[114]. - Regulatory lag in rate adjustments may prevent the company from recovering increased costs due to inflation, affecting profitability[115]. - The company may experience a reduction in discretionary water and natural gas usage by residential customers, particularly during peak seasons[116]. Sustainability and Emissions - In 2024, the company achieved a 25% reduction in Scope 1 and 2 greenhouse gas emissions from its 2019 baseline, with a target of 60% reduction by 2035[90]. - The company replaced 268 miles of gas pipeline in 2024 and over 930 miles since 2021, contributing to its emissions reduction efforts[90]. - The company began procuring nearly 100% renewable electricity for its water and wastewater operations in 2022, enhancing its sustainability efforts[90]. - The company has established a significant board-level oversight for climate-change matters, with quarterly discussions among senior leaders[91]. - The company is subject to risks related to climate change, which could lead to increased operational costs and affect financial performance[161]. Cybersecurity and Operational Risks - Cybersecurity threats pose risks to the company's information technology systems, which are essential for operations and customer service[125]. - The company has implemented a cybersecurity controls framework to mitigate risks, but vulnerabilities remain[128]. - The company maintains a cross-functional committee led by the Chief Information Officer to oversee cybersecurity risks and strategies[194]. - The company’s cybersecurity program is aligned with the NIST Cybersecurity Framework, incorporating best practices to protect against unauthorized access[191]. - The company may face challenges in maintaining adequate insurance coverage for potential cybersecurity incidents and other operational risks[127]. Shareholder Returns and Dividends - The company has paid dividends consecutively for 80 years, highlighting its commitment to shareholder returns[177]. - The company’s net property, plant, and equipment totaled $13,143,476,000 as of December 31, 2024, with Pennsylvania accounting for 70.8% of this total[198]. - In 2024, dividends paid represented 58.2% of net income[203]. - The company has paid dividends consecutively for 80 years, with a 6.0% increase in the quarterly dividend authorized on July 31, 2024, raising the annualized dividend rate to $1.302 per share[203].

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 ...