We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aqua America (WTR) Misses Q4 Earnings, Issues '17 Guidance
Read MoreHide Full Article
Water utility, Aqua America Inc. reported fourth-quarter 2016 earnings per share of 28 cents lagging the Zacks Consensus Estimate of 29 cents by 3.4%. Further, reported earnings improved 75.0% from the year-ago figure of 16 cents.
The year-over-year increase in earnings can be attributed to higher contributions from the higher water rates, and growth from the acquired water and wastewater assets of the company.
The full-year 2016 earnings were $1.32 on par with the Zacks Consensus Estimate of $1.32 per share. The earnings exceeded the 2015 figure by 15.8%. The full-year 2016 earnings were within the earnings guidance range of $1.30–$1.35 per diluted share.
Total Revenue
Fourth-quarter revenues of $196.8 million lagged the Zacks Consensus Estimate of $205 million by 4.61% and marginally missed the year-ago quarter figure of $197.1 million.
Higher consumption and customer growth in the regulated business along with rates and surcharges increased revenues by $4.8 million. However, lower revenue from the company’s sale of market-based activities and other factors offset the increase by $5 million.
The full-year 2016 total revenues were $819.9 million inching up 0.7% from $814.2 million reported in 2015. However, total revenues were 1.06% lower than the Zacks Consensus Estimate of $828.6 million.
Highlights of the Release
In 2016, Aqua America's state subsidiaries in Illinois, North Carolina, Ohio, Texas and Virginia have received rate awards or infrastructure surcharges, resulting in an annual increase of $5.6 million in revenues.
Consolidated operations and maintenance expenses were $77.6 million for fourth-quarter 2016, compared with $77.9 million in the year-ago quarter. Reduced market-based activities and lower production costs decreased operations and maintenance expenses by $4.8 million. Higher costs associated with employee-related expenses, regulated acquisitions and other factors offset the reduction in expenses by $4.5 million.
Aqua America has added nearly 7,000 customers to its existing base through strategic acquisitions. In addition to the organic growth, the customers of Aqua America increased by 1.6% or 15,300 new connections in 2016.
Interest expenses increased 4.1% to $20.5 million from $19.7 million in the year-ago quarter.
Aqua America, Inc. Price, Consensus and EPS Surprise
Current assets were $128.7 million as of Dec 31, 2016, up marginally from $128.4 million as of Dec 31, 2015.
Long-term debt was $1,737.6 million as of Dec 31, 2016, higher than $1,720.5 million as of Dec 31, 2015.
The company invested $383 million in 2016 to improve its infrastructure.
Guidance
Aqua America reiterated 2017 earnings guidance in the range of $1.34–1.39 per diluted share. The company expects customer base to expand by 1.5–2% in 2017.
For 2017, the company's capital investment budget is $450 million. This is part of its planned investment of nearly $1.2 billion during the 2017–2019 period.
A Peer Release
American Water Works (AWK - Free Report) reported fourth-quarter 2016 earnings per share of 57 cents per share surpassing the Zacks Consensus Estimate by a penny.
Upcoming Peer Releases
American States Water Company (AWR - Free Report) is scheduled to release fourth-quarter earnings after the closing bell on Feb 23. The Zacks Consensus Estimate for the quarter is pegged at 30 cents.
Global Water Resource Inc. (GWRS - Free Report) is scheduled to release fourth-quarter earnings on Feb 27. The Zacks Consensus Estimate for the quarter is pegged at 2 cents.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Aqua America (WTR) Misses Q4 Earnings, Issues '17 Guidance
Water utility, Aqua America Inc. reported fourth-quarter 2016 earnings per share of 28 cents lagging the Zacks Consensus Estimate of 29 cents by 3.4%. Further, reported earnings improved 75.0% from the year-ago figure of 16 cents.
The year-over-year increase in earnings can be attributed to higher contributions from the higher water rates, and growth from the acquired water and wastewater assets of the company.
The full-year 2016 earnings were $1.32 on par with the Zacks Consensus Estimate of $1.32 per share. The earnings exceeded the 2015 figure by 15.8%. The full-year 2016 earnings were within the earnings guidance range of $1.30–$1.35 per diluted share.
Total Revenue
Fourth-quarter revenues of $196.8 million lagged the Zacks Consensus Estimate of $205 million by 4.61% and marginally missed the year-ago quarter figure of $197.1 million.
Higher consumption and customer growth in the regulated business along with rates and surcharges increased revenues by $4.8 million. However, lower revenue from the company’s sale of market-based activities and other factors offset the increase by $5 million.
The full-year 2016 total revenues were $819.9 million inching up 0.7% from $814.2 million reported in 2015. However, total revenues were 1.06% lower than the Zacks Consensus Estimate of $828.6 million.
Highlights of the Release
In 2016, Aqua America's state subsidiaries in Illinois, North Carolina, Ohio, Texas and Virginia have received rate awards or infrastructure surcharges, resulting in an annual increase of $5.6 million in revenues.
Consolidated operations and maintenance expenses were $77.6 million for fourth-quarter 2016, compared with $77.9 million in the year-ago quarter. Reduced market-based activities and lower production costs decreased operations and maintenance expenses by $4.8 million. Higher costs associated with employee-related expenses, regulated acquisitions and other factors offset the reduction in expenses by $4.5 million.
Aqua America has added nearly 7,000 customers to its existing base through strategic acquisitions. In addition to the organic growth, the customers of Aqua America increased by 1.6% or 15,300 new connections in 2016.
Interest expenses increased 4.1% to $20.5 million from $19.7 million in the year-ago quarter.
Aqua America, Inc. Price, Consensus and EPS Surprise
Aqua America, Inc. Price, Consensus and EPS Surprise | Aqua America, Inc. Quote
Financial Highlights
Current assets were $128.7 million as of Dec 31, 2016, up marginally from $128.4 million as of Dec 31, 2015.
Long-term debt was $1,737.6 million as of Dec 31, 2016, higher than $1,720.5 million as of Dec 31, 2015.
The company invested $383 million in 2016 to improve its infrastructure.
Guidance
Aqua America reiterated 2017 earnings guidance in the range of $1.34–1.39 per diluted share. The company expects customer base to expand by 1.5–2% in 2017.
For 2017, the company's capital investment budget is $450 million. This is part of its planned investment of nearly $1.2 billion during the 2017–2019 period.
A Peer Release
American Water Works (AWK - Free Report) reported fourth-quarter 2016 earnings per share of 57 cents per share surpassing the Zacks Consensus Estimate by a penny.
Upcoming Peer Releases
American States Water Company (AWR - Free Report) is scheduled to release fourth-quarter earnings after the closing bell on Feb 23. The Zacks Consensus Estimate for the quarter is pegged at 30 cents.
Global Water Resource Inc. (GWRS - Free Report) is scheduled to release fourth-quarter earnings on Feb 27. The Zacks Consensus Estimate for the quarter is pegged at 2 cents.
Zacks Rank
Aqua America currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>