How did WTRG's Q1 2025 EPS forecast compare to past trends?
4/12/2025 02:39pm
**Essential Utilities' (WTRG) Q1 2025 EPS forecast is in line with past trends**, reflecting the company's consistent performance and growth trajectory:
1. **Steady Increase in EPS**: WTRG's EPS has shown a consistent upward trend over the past few years. The EPS grew from $1.86 in 2023 to $2.17 in 2024, representing a 17% increase.
2. **Analyst Expectations**: The Q1 2025 EPS consensus is $0.77, which is slightly above the EPS of $0.67 reported in Q4 2024. This suggests that analysts are expecting a seasonal fluctuation or additional growth drivers in the first quarter.
|code|Ticker|Name|Date|Diluted EPS (FY) YoY|Diluted EPS (FY)|market_code|
|---|---|---|---|---|---|---|
|WTRG|WTRG.N|Essential|2020|7.692307692307699|1.12|169|
|WTRG|WTRG.N|Essential|2021|49.10714285714284|1.67|169|
|WTRG|WTRG.N|Essential|2022|5.988023952095814|1.77|169|
|WTRG|WTRG.N|Essential|2023|5.084745762711869|1.86|169|
|WTRG|WTRG.N|Essential|2024|16.666666666666657|2.17|169|
3. **Historical Performance**: WTRG has a track record of meeting or slightly exceeding EPS expectations. For instance, the EPS of $0.67 in Q4 2024 exceeded the consensus estimate of $0.66. This historical accuracy in meeting expectations supports the notion that the Q1 2025 EPS forecast is realistic.
4. **Growth Drivers**: The company's regulated water segment is expected to grow at a CAGR of approximately 6% through 2029. Additionally, capital expenditures are planned at $1.4 to $1.5 billion in 2025, indicating a continued investment in infrastructure improvements. These factors are likely to support continued EPS growth.
5. **Market Position**: WTRG's dominant position in its service territories and recent acquisitions are expected to contribute to future earnings growth. The company's consistent dividend payments and history of increasing dividends also highlight its stable financial outlook.
In conclusion, WTRG's Q1 2025 EPS forecast is reasonable and aligned with the company's historical performance and growth prospects.