Essential Utilities, Inc. (NYSE: WTRG) reported Q2 EPS of $0.29, $0.07 better than the analyst estimate of $0.22. Revenue for the quarter came in at $384.47 million versus the consensus estimate of $371.24 million.

• Earns $0.29 earnings per share; reaffirms annual earnings guidance
• Strong residential water consumption offsets declines in other customer classes
• Declares 7% dividend increase

Essential Chairman and CEO Christopher Franklin said, “We are pleased with our strong financial results for the first full quarter following the closing of Peoples. The company continues to take the COVID-19 pandemic very seriously and thus far has seen little financial impact. In addition to concerns for the health and safety of our employees and customers, we are working with our customers on bill payment options where necessary. We are pleased that most of the states in which we operate have provided constructive regulatory treatment for this customer support. Additionally, the board of directors’ action earlier this week declaring a 7% increase to the quarterly dividend reflects confidence in our strategy and execution, continuing 75 years of consecutive quarterly cash dividends.”

GUIDANCE:

Essential Utilities, Inc. sees FY2020 EPS of $1.53-$1.58, versus the consensus of $1.48.

The company continues to monitor the global outbreak of COVID-19 and will update guidance impacts from the outbreak in the future if needed. At this time, the following continues to be the 2020 full-year guidance:

• Adjusted income per diluted common share (non-GAAP) of $1.53 to $1.58
• Earnings growth CAGR of 5 to 7 percent for 2019 through 2022
• Regulated water segment infrastructure investments of approximately $550 million in 2020
• Regulated natural gas segment infrastructure investments of approximately $400 million in 2020 on full-year basis (adjusted to include capital invested in 2020 prior to Essential’s ownership)
• Infrastructure investments of approximately $2.8 billion through 2022 in existing operations to rehabilitate and strengthen water, wastewater, and natural gas systems (including regulated natural gas segment capital invested in 2020 prior to Essential’s ownership)
• Regulated water segment rate base compound annual growth rate of 6 to 7 percent through 2022
• Regulated natural gas segment rate base compound annual growth rate of 8 to 10 percent through 2022
• Total annual regulated water segment customer growth of between 2 and 3 percent on average depending upon regulatory approval
• Gas customer count expected to be relatively stable for 2020

For earnings history and earnings-related data on Essential Utilities, Inc. (WTRG) click here.