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Aqua America's (WTR) Q2 Earnings Miss, Revenues Rise Y/Y

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Aqua America Inc. reported second-quarter 2019 earnings per share of 37 cents, lagging the Zacks Consensus Estimate by 5.1%.

The bottom line was on par with the year-ago quarter’s reported figure.

Total Revenues

Quarterly revenues amounted to $218.9 million, which missed the Zacks Consensus Estimate of $225 million by 2.8%. However, the top line jumped 3.3% 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. price-consensus-eps-surprise-chart | Aqua America, Inc. Quote


Highlights of the Release

The company continues to expand its operation through acquisitions.  Courtesy of its water and wastewater acquisition, the company is on track to expand its customer base by 2-3% in 2019.

Operation and maintenance expenses increased nearly 17.7% year over year to $86.5 million.

Interest expenses were $23.3 million, marginally lower than $23.7 million in the year-ago quarter.

Year-to-date rate increase in 2019 will raise annual revenues of the company by $10.5 million. The pending rate case when approved could increase revenues by $2.3 million.

Financial Highlights

Current assets were $2,117.9 million as of Jun 30, 2019 compared with $147.1 million on Dec 31, 2018.

Long-term debt was $2,749.2 million as of Jun 30, 2019, higher than $2,398.5 million on Dec 31, 2018.

During the first half of 2019, the company invested $269.2 million to strengthen its water and wastewater infrastructure.

Guidance

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

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.

Water Utility Releases

American Water Works Company (AWK - Free Report) posted second-quarter 2019 earnings of 94 cents per share, in line with the Zacks Consensus Estimate.

American States Water Company (AWR - Free Report) reported second-quarter 2019 operating earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 23%.

Middlesex Water (MSEX - Free Report) came out with quarterly earnings of 49 cents per share, lagging the Zacks Consensus Estimate of 55 cents per share by 10.91%.

Zacks Rank

Currently, Aqua America carries a Zacks Rank #4 (Sell).
 
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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