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Jun 30, 2020
Essential Utilities Q2 2020 Earnings Report
Reported strong financial results for Q2 2020, driven by the inclusion of Peoples and growth in the regulated water segment.
Key Takeaways
Essential Utilities reported a strong second quarter with net income of $74.6 million, or $0.29 per share. Revenues increased by 75.6% to $384.5 million, driven by the acquisition of Peoples and growth in the regulated water segment. The company reaffirmed its annual earnings guidance and declared a 7% dividend increase.
Net income reached $74.6 million, or $0.29 per share.
Revenues increased by 75.6% to $384.5 million.
Residential water consumption was up year over year, offsetting declines in other customer classes.
The board of directors declared a 7% increase to the quarterly dividend.
Revenue by Segment
Forward Guidance
Essential reaffirmed 2020 guidance
Positive Outlook
- Adjusted income per diluted common share (non-GAAP) of $1.53 to $1.58
- Earnings growth CAGR of 5 to 7 percent for 2019 through 2022
- Regulated water segment infrastructure investments of approximately $550 million in 2020
- Regulated natural gas segment infrastructure investments of approximately $400 million in 2020 on full-year basis (adjusted to include capital invested in 2020 prior to Essential’s ownership)
- Infrastructure investments of approximately $2.8 billion through 2022 in existing operations to rehabilitate and strengthen water, wastewater, and natural gas systems (including regulated natural gas segment capital invested in 2020 prior to Essential’s ownership)
Challenges Ahead
- Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
- Disruptions in the global economy
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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