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Sep 30, 2020
Essential Utilities Q3 2020 Earnings Report
Reported financial results for Q3 2020, with GAAP earnings of $0.22 per share and adjusted non-GAAP earnings of $0.23 per share.
Key Takeaways
Essential Utilities reported a net income of $55.7 million, or $0.22 per share, for Q3 2020. Revenues for the quarter were $348.6 million, a 43.1% increase compared to Q3 2019. The company refined its 2020 annual adjusted earnings guidance to the top end of the $1.53 to $1.58 range.
Essential reported GAAP earnings of $0.22 per share and adjusted earnings per share of $0.23.
Revenues increased by 43.1% to $348.6 million compared to the third quarter of 2019.
The company refined its 2020 annual adjusted earnings per share guidance to the top end of the $1.53 to $1.58 range.
Essential invested $554.1 million in the first nine months of the year to improve its regulated water and natural gas infrastructure systems.
Essential Utilities
Essential Utilities
Essential Utilities Revenue by Segment
Revenue by Segment
Regulated Water Revenue
CapyFin.comRegulated Natural Gas Revenue
CapyFin.com Forward Guidance
Essential Utilities updated its 2020 full-year guidance and expects adjusted income per diluted common share at the top end of the $1.53 to $1.58 range.
Positive Outlook
- Expects adjusted income per diluted common share (non-GAAP) at the top end of the $1.53 to $1.58 range
- 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
- Infrastructure investments of approximately $2.8 billion through 2022 in existing operations
Challenges Ahead
- Guidance is subject to risks and uncertainties including disruptions in the global economy
- Financial and workforce impacts from the COVID-19 pandemic
- The continuation of the company’s growth-through-acquisition program
- General economic business conditions
- The company’s ability to fund needed infrastructure
Revenue & Expenses
Visualization of income flow from segment revenue to net income