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Aqua America (WTR) Lags Q4 Earnings Estimates, Issues View
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Aqua America Inc. reported fourth-quarter 2017 earnings per share of 30 cents, lagging the Zacks Consensus Estimate of 31 cents by 3.2%. However, the reported earnings figure was better than 28 cents registered in the year-ago quarter.
Total Revenues
Fourth-quarter revenues of $203.3 million lagged the Zacks Consensus Estimate of $205 million by 0.8%. Revenues were up 3.3% year over year. The year-over-year improvement in total revenues was due to increase in rates and surcharge revenues, consumption growth and increase in regulated revenues.
Aqua America, Inc. Price, Consensus and EPS Surprise
In 2017, through acquisition and organic growth, the company expanded its customer base by 1%. The company expects that completion of six pending acquisition of municipal systems coupled with organic growth will result in customer addition of 25,000 in 2018.
In 2017, Aqua America's state subsidiaries in Indiana, Illinois, New Jersey, North Carolina and Ohio have received rate awards or infrastructure surcharges amounting to $21.6 million. To date in 2018, the company received rate approval of $11.1 million. In addition, the company currently has rate proceedings pending in Illinois, North Carolina and Virginia worth $15.8 million.
Interest expenses increased 13.2% to $23.2 million from $20.5 million in the year-ago quarter.
Financial Highlights
Current assets were $131.3 million as of Dec 31, up from $128.7 million as of Dec 31, 2016.
Long-term debt was $2,007.7 million as of Dec 31, higher than $1,737.6 million as of Dec 31, 2016.
Guidance
Aqua America expects 2018 earnings in the range of $1.37-$1.42 per share. It expects customer base to expand 2-3% in 2018.
The company also plans to invest $500 million in 2018. This is part of the investment plan of nearly $1.4 billion through 2020.
Peer Releases
American Water Works Company (AWK - Free Report) posted fourth-quarter 2017 earnings per share of 69 cents, beating the Zacks Consensus Estimate of 66 cents by 4.5%.
American States Water Company (AWR - Free Report) delivered fourth-quarter 2017 earnings of 36 cents per share, surpassing the Zacks Consensus Estimate of 35 cents by 2.7%.
Upcoming Peer Releases
Connecticut Water Service, Inc. is expected to release fourth-quarter 2017 earnings on Mar 12. The Zacks Consensus Estimate for the quarter is pegged at 21 cents.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Aqua America (WTR) Lags Q4 Earnings Estimates, Issues View
Aqua America Inc. reported fourth-quarter 2017 earnings per share of 30 cents, lagging the Zacks Consensus Estimate of 31 cents by 3.2%. However, the reported earnings figure was better than 28 cents registered in the year-ago quarter.
Total Revenues
Fourth-quarter revenues of $203.3 million lagged the Zacks Consensus Estimate of $205 million by 0.8%. Revenues were up 3.3% year over year. The year-over-year improvement in total revenues was due to increase in rates and surcharge revenues, consumption growth and increase in regulated revenues.
Aqua America, Inc. Price, Consensus and EPS Surprise
Aqua America, Inc. Price, Consensus and EPS Surprise | Aqua America, Inc. Quote
Highlights of the Release
In 2017, through acquisition and organic growth, the company expanded its customer base by 1%. The company expects that completion of six pending acquisition of municipal systems coupled with organic growth will result in customer addition of 25,000 in 2018.
In 2017, Aqua America's state subsidiaries in Indiana, Illinois, New Jersey, North Carolina and Ohio have received rate awards or infrastructure surcharges amounting to $21.6 million. To date in 2018, the company received rate approval of $11.1 million. In addition, the company currently has rate proceedings pending in Illinois, North Carolina and Virginia worth $15.8 million.
Interest expenses increased 13.2% to $23.2 million from $20.5 million in the year-ago quarter.
Financial Highlights
Current assets were $131.3 million as of Dec 31, up from $128.7 million as of Dec 31, 2016.
Long-term debt was $2,007.7 million as of Dec 31, higher than $1,737.6 million as of Dec 31, 2016.
Guidance
Aqua America expects 2018 earnings in the range of $1.37-$1.42 per share. It expects customer base to expand 2-3% in 2018.
The company also plans to invest $500 million in 2018. This is part of the investment plan of nearly $1.4 billion through 2020.
Peer Releases
American Water Works Company (AWK - Free Report) posted fourth-quarter 2017 earnings per share of 69 cents, beating the Zacks Consensus Estimate of 66 cents by 4.5%.
American States Water Company (AWR - Free Report) delivered fourth-quarter 2017 earnings of 36 cents per share, surpassing the Zacks Consensus Estimate of 35 cents by 2.7%.
Upcoming Peer Releases
Connecticut Water Service, Inc. is expected to release fourth-quarter 2017 earnings on Mar 12. The Zacks Consensus Estimate for the quarter is pegged at 21 cents.
Zacks Rank
Aqua America carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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