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 Q1 Earnings by a Penny, '17 View Stable
Read MoreHide Full Article
Water utility Aqua America Inc. reported first-quarter 2017 earnings per share of 28 cents, lagging both the Zacks Consensus Estimate and the year-ago quarter earnings of 29 cents by 3.4%.
Total Revenue
First-quarter revenues of $187.8 million lagged the Zacks Consensus Estimate of $196 million by 4.2% and also missed the year-ago quarter figure of $192.6 million by 2.5%.
The year-over-year decline in total revenue was due to lower contribution from market-based activities and drop in consumption.
Highlights of the Release
Year to date, Aqua America's state subsidiaries in Indiana, Illinois, New Jersey, North Carolina and Ohio have received rate awards or infrastructure surcharges totaling $10.7 million. In addition, the company currently has rate proceedings pending in Illinois and Virginia for $12.2 million.
Consolidated operations and maintenance expenses were $69.1 million for first-quarter 2017, compared with $73.5 million in the year-ago quarter. The year-over-year decline was due to lower employee-related costs and a decrease in expenses tied to market-based activities.
Interest expenses increased 7.6% to $21.3 million from $19.9 million in the year-ago quarter.
Aqua America, Inc. Price, Consensus and EPS Surprise
Current assets were $122.5 million as of Mar 31, 2017, down from $128.7 million as of Dec 31, 2016.
Long-term debt was $1,797.5 million as of Mar 31, 2017, higher than $1,737.6 million as of Dec 31, 2016.
Guidance
Aqua America reiterated its 2017 earnings guidance in the range of $1.34–$1.39 per diluted share. The company expects customer base to expand 1.5–2% in 2017.
The company also reaffirms its 2017 capital investment budget of $450 million. This is part of its planned investment of nearly $1.2 billion during the 2017–2019 time period.
The company aims to increase its customer base in the range of 9,000–13,000 through acquisitions in 2017.
Our View
Even though the company missed the top-line and earnings estimates, the rate hikes already received will enable it to continue with its infrastructural strengthening initiatives.
The company aims to increase its customer level by 1.5–2% in 2017 through its strategic acquisitions and organic initiatives.
Aqua America currently carries a Zacks Rank #4 (Sell).
California Water Service Group (CWT - Free Report) , a Zacks Rank #3 stock, reported first-quarter 2017 earnings of 2 cents per share, lagging the Zacks Consensus Estimate of 5 cents by 60.0%.
SJW Corporation (SJW - Free Report) , a Zacks Rank #4 stock, reported first-quarter 2017 earnings of 18 cents per share, lagging the Zacks Consensus Estimate of 22 cents by 18.18%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Aqua America (WTR) Misses Q1 Earnings by a Penny, '17 View Stable
Water utility Aqua America Inc. reported first-quarter 2017 earnings per share of 28 cents, lagging both the Zacks Consensus Estimate and the year-ago quarter earnings of 29 cents by 3.4%.
Total Revenue
First-quarter revenues of $187.8 million lagged the Zacks Consensus Estimate of $196 million by 4.2% and also missed the year-ago quarter figure of $192.6 million by 2.5%.
The year-over-year decline in total revenue was due to lower contribution from market-based activities and drop in consumption.
Highlights of the Release
Year to date, Aqua America's state subsidiaries in Indiana, Illinois, New Jersey, North Carolina and Ohio have received rate awards or infrastructure surcharges totaling $10.7 million. In addition, the company currently has rate proceedings pending in Illinois and Virginia for $12.2 million.
Consolidated operations and maintenance expenses were $69.1 million for first-quarter 2017, compared with $73.5 million in the year-ago quarter. The year-over-year decline was due to lower employee-related costs and a decrease in expenses tied to market-based activities.
Interest expenses increased 7.6% to $21.3 million from $19.9 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 $122.5 million as of Mar 31, 2017, down from $128.7 million as of Dec 31, 2016.
Long-term debt was $1,797.5 million as of Mar 31, 2017, higher than $1,737.6 million as of Dec 31, 2016.
Guidance
Aqua America reiterated its 2017 earnings guidance in the range of $1.34–$1.39 per diluted share. The company expects customer base to expand 1.5–2% in 2017.
The company also reaffirms its 2017 capital investment budget of $450 million. This is part of its planned investment of nearly $1.2 billion during the 2017–2019 time period.
The company aims to increase its customer base in the range of 9,000–13,000 through acquisitions in 2017.
Our View
Even though the company missed the top-line and earnings estimates, the rate hikes already received will enable it to continue with its infrastructural strengthening initiatives.
The company aims to increase its customer level by 1.5–2% in 2017 through its strategic acquisitions and organic initiatives.
Aqua America currently carries a Zacks Rank #4 (Sell).
Peer Releases
American States Water Company (AWR - Free Report) reported first-quarter 2017 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 32 cents by 6.25%. It carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
California Water Service Group (CWT - Free Report) , a Zacks Rank #3 stock, reported first-quarter 2017 earnings of 2 cents per share, lagging the Zacks Consensus Estimate of 5 cents by 60.0%.
SJW Corporation (SJW - Free Report) , a Zacks Rank #4 stock, reported first-quarter 2017 earnings of 18 cents per share, lagging the Zacks Consensus Estimate of 22 cents by 18.18%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>