Why Essential Utilities (WTRG) Could Beat Earnings Estimates Again

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].