Essential Utilities Q4 Earnings & Revenues Beat Estimates, Rise Y/Y

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$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]