May. 8 at 5:58 PM
Heads up alert! Upcoming earnings on Monday, 5/12/2025 for
$WTRG Neutral (5.5)
In the current analysis of Essential Utilities Inc.
(WTRG), we observe a mixed sentiment reflected across various financial metrics and upcoming events.
The company's P/E ratio stands at a competitive 22.5, which is slightly above the industry average of 20.5, indicating that while the stock is somewhat overvalued according to traditional metrics, its growth trajectory is supported by strong fundamentals.
The EPS growth rate is forecasted at 7% for the upcoming fiscal year, driven by strategic infrastructure investments and a robust capital improvement program exceeding
$1 billion.
Revenue forecasts for WTRG suggest a steady increase, aligning with the company's efforts to enhance operational efficiencies and expand its service footprint across nine states.
Comparatively, its peers in the utility sector are experiencing similar growth patterns, yet WTRG's commitment to environmental sustainability and community engagement positions it favorably within the market.
Despite these positives, there are concerns regarding the company’s ability to beat earnings expectations in its forthcoming report, as analysts suggest it may lack the necessary catalysts for a significant upside.
Institutional ownership remains high at 80%, which can be a double-edged sword; while it reflects confidence in the company's strategy, it also makes the stock vulnerable to large sell-offs should sentiment shift.
Furthermore, as the company prepares to report earnings on May 12, 2025, expectations are tempered by a noted rise in operating expenses that could impact margins.
This is critical in a sector where operational efficiency is paramount.
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Regarding the upcoming earnings report, analysts project a cautious estimate due to mixed signals from recent performance metrics.
Historical data shows that WTRG has a consistent earnings surprise history, having beaten estimates in three of the last four quarters.
The consensus estimate for the upcoming report is set at
$0.45 per share, with market analysts closely monitoring operational costs that have escalated recently.
The potential impact of the earnings report could lead to significant volatility in stock performance, especially given the current market dynamics and the anticipated infrastructure investments that could support long-term growth.
The results will be pivotal in shaping investor sentiment and determining WTRG's trajectory in the near term.
- Funds were net sellers of
$WTRG during the previous reporting quarter.
- Top 3 funds with large holdings in
$WTRG:
* GW&K Investment Management LLC
$26MM. CGMFundRank: 80%
* Point72 Asset Management LP
$9MM. CGMFundRank: 94%, Fund Website: www.point72.com
* Holocene Advisors LP
$5MM. CGMFundRank: 81%, Fund Website: www.holoceneadvisors.com
- Last 10 days performance: 2%
- Last 30 days performance: 9%
- Last 90 days performance: 18%
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