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Mar 31, 2021
Essential Utilities Q1 2021 Earnings Report
Reported strong financial results, driven by the inclusion of Peoples Gas and growth in the regulated water segment.
Key Takeaways
Essential Utilities reported a strong first quarter, marked by a significant increase in revenues and net income, primarily due to the inclusion of Peoples Gas results for the full period and growth in the regulated water segment. The company reaffirmed its annual earnings guidance and continues to invest in infrastructure improvements.
Net income increased to $183.7 million, or $0.72 per share, compared to $51.8 million, or $0.20 per share in the first quarter of 2020.
Revenues rose to $583.6 million, a 128.3% increase from $255.6 million in the first quarter of 2020.
The regulated water segment reported revenues of $228.4 million, up 5.6% from $216.2 million in the first quarter of 2020.
Essential invested approximately $178 million in infrastructure improvements during the quarter and remains on track to invest $1 billion in 2021.
Revenue by Segment
Forward Guidance
Essential Utilities reaffirmed its 2021 full-year guidance, including net income per diluted common share of $1.64 to $1.69, earnings per share growth CAGR of 5 to 7% for 2020 through 2023, and significant investments in regulated water and natural gas segments.
Positive Outlook
- Net income per diluted common share of $1.64 to $1.69
- Earnings per share growth CAGR of 5 to 7% for 2020 through 2023
- Regulated water segment infrastructure investments of approximately $550 million in 2021
- Regulated natural gas segment infrastructure investments of approximately $450 million in 2021
- Infrastructure investments of approximately $3 billion through 2023
Challenges Ahead
- Guidance is subject to risks and uncertainties.
- Disruptions in the global economy.
- Financial and workforce impacts from the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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