Back to top

Image: Bigstock

Aqua America's (WTR) Q1 Earnings Miss, Revenues Increase Y/Y

Read MoreHide Full Article

Aqua America Inc. (WTR - Free Report) reported first-quarter 2019 earnings per share of 28 cents, lagging the Zacks Consensus Estimate by 6.7%.

The bottom line also fell 3.5% year over year, primarily due to higher expenditure incurred during the reported quarter.

Total Revenues

Quarterly revenues amounted to $201.11 million, which missed the Zacks Consensus Estimate of $204 million by 1.4%. However, the reported revenues were up 3.5% year over year. The upside can be attributed to rate activity, organic growth and contribution from its acquired assets.

Aqua America, Inc. Price, Consensus and EPS Surprise

Aqua America, Inc. Price, Consensus and EPS Surprise | Aqua America, Inc. Quote

Highlights of the Release

The company continues to expand its operation through acquisitions. Aqua America added nearly 572 customer connections in first-quarter 2019 through the completion of three water and wastewater service providers.

First-quarter total cost and expenses increased nearly 7% year over year to $133.7 million.

Interest expenses also increased 18.7% to $27.9 million from $23.5 million in the year-ago quarter.

Financial Highlights

Current assets were $143.8 million as of Mar 31, 2019 compared with $147.1 million on Dec 31, 2018.

Long-term debt was $2,462.9 million as of Mar 31, 2019, higher than $2,398.5 million on Dec 31, 2018.

During the quarter, the company invested $133.8 million to strengthen its water and wastewater infrastructure.

Guidance

Aqua America reiterated its 2019 adjusted net earnings guidance within $1.45-$1.50 per share.

It expects customer base to expand 2-3% in 2019. The company plans to invest $550 million during the year. This is part of its investment plan of nearly $1.4 billion through 2021.

Upcoming Utility Releases

American States Water Company (AWR - Free Report) is expected to release first-quarter earnings on May 6. The Zacks Consensus Estimate for the quarter is pegged at 36 cents.

Connecticut Water Service, Inc. (CTWS - Free Report) is expected to release first-quarter earnings on May 9. The Zacks Consensus Estimate for the quarter to be reported is pegged at 20 cents.

Consolidated Water Co. Ltd. (CWCO - Free Report) is expected to release first-quarter earnings on May 13. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at 19 cents.

Zacks Rank

Currently, Aqua America carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>