Essential Utilities Reports Revenue Growth Amid Declining Earnings
Essential Utilities (WTRG) reported second-quarter results showing strong revenue growth driven by rate case approvals and acquisitions, but earnings per share declined year-over-year. The company's regulated water segment saw a 7.6% increase in revenue to $357.5 million, while overall first-half revenue rose 7.2%. Growth was fueled by regulatory recoveries of $43.9 million across several states and new customer acquisitions totaling over $282 million. Despite the top-line gains, net income fell from $107.8 million to $105.7 million in Q2, with GAAP earnings per share dropping slightly. The company had to exclude merger-related costs just to show flat adjusted profitability. Over six months, net income dropped by nearly 16%, and operating expenses increased due to higher employee and production costs. Despite the profit decline, institutional interest has risen, with hedge funds increasing their holdings in Essential Utilities stock. Short sellers remain relatively quiet, suggesting confidence among investors that the company's growth trajectory remains intact.
Tickers: $A2A1
Topics: acquisitions merger_progress regulated_utilities revenue_growth