A month has gone by since the last earnings report for Aqua America, Inc. . Shares have lost about 3.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is WTR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Aqua America 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There has been one revision lower for the current quarter.
Aqua America, Inc. Price and Consensus
VGM Scores
At this time, WTR has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise WTR has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Aqua America (WTR) Down 3.4% Since its Last Earnings Report?
A month has gone by since the last earnings report for Aqua America, Inc. . Shares have lost about 3.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is WTR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Aqua America 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There has been one revision lower for the current quarter.
Aqua America, Inc. Price and Consensus
Aqua America, Inc. Price and Consensus | Aqua America, Inc. Quote
VGM Scores
At this time, WTR has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise WTR has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.