Category Archives: Utilities
New Jersey Resources Corp (NJR) 24Q4 Update
24Q4 GAAP diluted loss per share was $0.91 and net financial earnings per basic share (NFEPS), a non-GAAP measure, was $0.89. That compares with 23Q4 GAAP EPS of $0.38 and NFEPS of $0.30. I had projected GAAP EPS of $0.94 … Continue reading
Spire (SR) 24Q4 Update
Spire reported a 24Q4 GAAP loss of $0.51 per share, better than 23Q4’s $0.66 loss. Its non-GAAP, net economic loss per share (NEEPS) was $0.54, also improved over 23Q4’s $0.78 loss, but worse than my $0.41 loss estimate. Operating revenues … Continue reading
Public Service Enterprise Group (PEG) 24Q3 Update
Public Service Enterprise Group (PEG) reported 24Q3 operating revenues of $2.64 billion, up 7.6% from 23Q3. Diluted GAAP EPS was $1.03 vs. $0.27 last year. 24Q3 operating income rose 16%, but most of the gain vs. the prior year was … Continue reading
American Water Works (AWK) 24Q3 Update
AWK reported 24Q3 EPS of $1.80, up from $1.66 in 23Q3 and above my estimate of $1.67. Operating revenues rose 13.4% to $1.32 billion. Water and wastewater revenues increased 11.3%, with billed water service volumes up 2.8% and estimated average … Continue reading
Initiating Coverage on Spire Inc (SR)
Spire Inc. (NYSE:SR) is a public utility holding company based in St. Louis, MO. The company operates in three segments: Gas Utility, Gas Marketing and Midstream. Its Gas Utility segment accounts for 93% of Spire’s operating revenues and 80% of … Continue reading
New Jersey Resources (NJR) 24Q3 Update
24Q3 GAAP diluted loss per share was $0.12 and net financial loss per basic share, a non-GAAP measure, was $0.09. That compares with 23Q3 GAAP EPS of $0.02 and net financial earnings per share (NFEPS) of $0.10. I had projected … Continue reading
American Water Works (AWK) 24Q2 Update
AWK reported 24Q2 EPS of $1.42, down from $1.44 in 23Q2 and below my estimate of $1.48. Operating revenues rose 4.7% to $1.14 billion. Billed water service volumes declined 0.4%, but this was more than offset by an estimated 5.3% … Continue reading
Public Service Enterprise Group (PEG) 24Q2 Update
Public Service Enterprise Group (PEG) reported 24Q2 operating revenues of $2.42 billion, unchanged from 23Q2. PSE&G’s operating revenues rose 26.2% to $1.86 billion. PSEG Power & Other’s net revenues, excluding sales to affiliates, fell 24.2% to $0.68 billion. 24Q2 diluted … Continue reading
New Jersey Resources (NJR) 24Q2 Update
24Q2 GAAP diluted EPS was $1.22 and net financial earnings per basic share (NFEPS), a non-GAAP measure, was $1.40. That compares with 23Q2 GAAP EPS of $1.13 and NFEPS of $1.15. The results exceed my expectations. The consensus NFEPS estimate … Continue reading
Public Service Enterprise (PEG) 24Q1 Update
Public Service Enterprise Group (PEG) reported 24Q1 operating revenues of $2.76 billion, down 26.5% from $3.76 billion in 23Q1. PSE&G’s operating revenues rose 1.7% to $2.33 billion. PSEG Power & Other’s net revenues, excluding sales to affiliates, decreased 70.8% $0.43 … Continue reading
American Water Works (24Q1) Update
AWK reported 24Q1 EPS of $0.95, up from $0.91 in 23Q1. Consensus was $0.97. This quarter’s results included a $0.02 benefit from an increase in interest income on the Home Services Group seller note. Operating revenues rose 7.8% to $1.01 … Continue reading
Notes and Analysis from EEI’s 2024 Wall Street Briefing
The Edison Electric Institute’s 2024 Wall Street Briefing was held on February 20, 2024. The meeting came after the electric utility sector’s disappointing performance in 2023. The EEI Index, a composite total return measure for all 39 EEI member companies, … Continue reading
New Jersey Resources (NJR) 23Q4 Update
23Q4 GAAP EPS was $0.38 and net financial earnings per share (NFEPS), a non-GAAP measure, was $0.30 per basic share. That compares with 22Q4 GAAP EPS of $0.56 and NFEPS of $0.50. I had anticipated GAAP EPS of $0.30 and … Continue reading
Public Service Enterprise Group (PEG) 23Q3 Update
Public Service Enterprise Group (PEG) reported 23Q3 operating revenues of $2.46 billion, up 8.1% from $2.27 billion in 22Q3. PSE&G’s operating revenues rose 2.4% to $1.99 billion. PSEG Power & Other’s revenues increased 43.3% $0.5 billion, due to a decline … Continue reading
American Water Works (AWK) 23Q3 Update
AWK reported 23Q3 EPS of $1.44, up from $1.63 in 22Q3 and my estimate of $1.61. This quarter’s results included a $0.04 benefit from warm, dry weather. 22Q3’s weather benefit was $0.06. Operating revenues increased 7.9% to $1.17 billion. Billed … Continue reading
New Jersey Resources (NJR) 23Q3 Update
23Q3 GAAP EPS was $0.02 and net financial earnings per share (NFEPS), a non-GAAP measure, was $0.10 per basic share. That compares with 22Q3 GAAP EPS of $0.14 and NFEPS of –$0.04. I had anticipated a GAAP loss of $0.07 … Continue reading
Public Service Enterprise Group (PEG) 23Q2 Update
Public Service Enterprise Group (PEG) reported 23Q2 operating revenues of $2.42 billion, up 16.6% from $2.08 billion in 22Q2. PSE&G’s operating revenues were flat at $1.66 billion. PSEG Power & Other’s revenues increased 40% $0.9 billion, due to a large … Continue reading
American Water Works 23Q2 Update
AWK reported 23Q2 EPS of $1.44, up from $1.20 in 22Q2 and my estimate of $1.18. This quarter’s results included a $0.07 benefit from warm, dry weather. Operating revenues increased 17.1% to $1.1 billion. Billed water service volumes increased 3.7%, … Continue reading
New Jersey Resources (NJR) 23Q2 Update
NJR reported 23Q2 GAAP net income of $1.13 per diluted share and net financial earnings (NFE), a non-GAAP measure, of $1.16 per basic share. That compares with 22Q2 GAAP net income of $1.00 per share and NFE per basic share … Continue reading
Public Service Enterprise Group (PEG) 23Q1 Update
Public Service Enterprise Group (PEG) reported 23Q1 operating revenues of $3.76 billion, up 62.3% from $2.31 billion in 22Q1. The increase was due to a $1.64 billion surge in net mark-to-market gains on derivatives at PSEG Power, which more than … Continue reading
American Water Works (AWK) 23Q1 Update
AWK reported 23Q1 EPS of $0.91, compared with $0.87 in 22Q1 and my estimate of $0.83. Operating revenues increased 11.4% to $938 million. Billed water service volumes increased 0.4%, with gains among industrial and commercial customers more than offsetting a … Continue reading
New Jersey Resources (NJR) 23Q1 Update
NJR reported 23Q1 GAAP net income of $1.19 per diluted share and net financial earnings (NFE), a non-GAAP measure, of $1.14 per basic share. That compares with 22Q1 GAAP net income of $1.16 per share and NFE per basic share … Continue reading
American Water Works (AWK) 22Q4 Update
AWK reported 22Q4 EPS of $0.81, compared with $3.56 in 21Q4 (or $0.86 excluding a $2.70 gain for the sale of the Homeowner Services (HOS) business). Operating revenues decreased 2.1% to $931 million. Besides the sale of HOS, 22Q4’s lower … Continue reading
2022 Large Cap Performance Analysis
Large cap stocks, as measured by the Lark Research Large Cap Index (the “Index”)[1] which mirrors the S&P 500, posted a decline of 19.5% in 2022. As in previous years, most of the performance was driven by a handful of … Continue reading
New Jersey Resources (NJR) 22Q4 Update
NJR reported 22Q4 GAAP net income of $0.56 per diluted share and net financial earnings (NFE), a non-GAAP measure, of $0.50 per basic share. That compares with the 21Q4 GAAP loss of $0.01 per share and NFE per basic share … Continue reading
American Water Works (AWK) 22Q3 Update
AWK reported 22Q3 EPS of $1.63, up 6.5% from $1.53 in 21Q3 and above my estimate of $1.52. Operating revenues decreased 0.9% to $1.08 billion, as regulatory rate increases were more than offset by lost revenues from the sales of … Continue reading
Public Service Enterprise Group (PEG) 22Q3 Update
Public Service Enterprise Group (PEG) reported 22Q3 operating revenues of $2.27 billion, up 19.4% from 21Q3. The increase in revenues was due mostly to higher gas supply sales to third parties at PEG Power and higher commodity revenues, including higher … Continue reading
Initiating Coverage of New Jersey Resources Corp (NJR)
NJR reported 22Q3 GAAP net income of $0.14 per diluted share and a net financial loss (a non-GAAP measure) of $0.04. That compares with the 21Q3 GAAP loss of $1.16, owing to an impairment charge on its investment in the … Continue reading
Public Service Enterprise Group (PEG) 22Q2 Update
Public Service Enterprise Group (PEG) reported 22Q2 operating revenues of $2.08 billion, up 10.8% from 21Q2. GAAP EPS was $0.26 vs. a loss of $0.35 a year ago. Most of last year’s loss was related to a net $457 million … Continue reading
American Water Works (AWK) 22Q2 Update
American Water Works Company (AWK) reported 22Q2 EPS of $1.20, up 5% from $1.14 in 21Q2. Operating revenues decreased 6.2% to $937 million, mostly due to the sale of the Homeowner Services (HOS) and New York American Water (NYAM) businesses, … Continue reading
The Drivers of Large Cap Stock Performance in 2021
Estimated Returns by Sectors, Industry Groups and Industries Large cap stocks, as measured by the Lark Research Large Cap index (the “Index”) which currently mirrors the S&P 500, turned in another impressive performance in 2021. The Index posted a price … Continue reading
SJI 21Q3 Update
SJI reported a 21Q3 GAAP net loss of $25.8 million or $0.23 per share, wider than 20Q3’s net loss of $10.3 million or $0.10. On an economic earnings basis, which adjusts for fluctuations in the fair market value of derivatives … Continue reading
PSEG’s 2021 Investor Day
Public Service Enterprise Group held its 2021 Investor Day on Sept. 27, 2021. At the meeting, management offered the following guidance:
So. Jersey Industries: High Dividend Yield With Moderate Upside Price Potential
SJI’s utility businesses – South Jersey Gas Company (SJG) and Elizabethtown Gas Company (ETG) – are its core growth engines. Representing 70%-80% of consolidated profits, they have grown by pursuing regulatory-approved infrastructure investment programs and gaining customers from new construction … Continue reading
American Water Works 21Q2 Update
2021 Second Quarter Results in Line with Expectations. Maintaining Neutral Rating. AWK reported 21Q2 EPS of $1.14, up 17.5% from 20Q2. Operating revenues increased 7.3% to $999 million. Operating income rose 5.4% to $330 million. Operating margin eased 60 bp … Continue reading
PSEG: A Possible Rocky Transition to T&D
It has been a year since PSEG announced a strategic review to explore divesting its fossil fuel generating assets. Since then, management has said that it is pleased with the interest shown by potential buyers in its 6,750+ MW portfolio … Continue reading
2021 Market Outlook – Part 2: S&P 500 Sector Analysis
2020 was of course dominated by the impact of the pandemic on the economy and specifically on the revenues and profits of each of the S&P 500 constituents. There was a sharp stock market sell-off in March-April, followed by a … Continue reading
NJR Adjusts to Meet Its Challenges and Opportunities
Under new CEO Steve Westhoven, the business portfolio of New Jersey Resources (NJR) has evolved as it typically does in response to changes in its operating environment. Its regulated utility operations, New Jersey Natural Gas (NJNG) and its Midstream segment, … Continue reading
American Water Works (AWK) 2019 Update
American Water Works Company (AWK) has delivered superior operating, financial and stock price performance over the past eight years. Its 2018 performance did not match the eight year average in either absolute or relative terms. However, management is confident in … Continue reading
SJI Outlines Its Vision
SJI’s stock has underperformed peers due in part to disappointing guidance for 2018 given at its recent analyst meeting. However, if management is able to deliver on its 2019 guidance, the stock should have reasonable upside, especially since it is trading at a discount to its peer group. Continue reading
Consolidated Water 18Q1 Update
CWCO reported first quarter net earnings attributable to stockholders $2.1 million or $0.14 cents per diluted share. That compares with 17Q1 net income of $2.6 million or $0.18 per diluted share. Revenues declined 2.2% to $15.7 million.
PSEG Dances to Stay Fit
Public Service Enterprise Group (PSEG) is a public utility holding company whose principal direct operating subsidiaries include Public Service Electric & Gas (PSE&G), which serves 2.2 million electric customers and 1.8 million gas customers along a northeast to southwest swath … Continue reading
Update on Consolidated Water (CWCO)
Shares of Consolidated Water (CWCO) have struggled over the past several months, extending a period of underperformance vs. peers that stretches back for more than a year. Year-to-date (through 12/9), CWCO has posted a loss (including dividends) of 6.4%. That … Continue reading
The Coal Industry Goes Bust
Very few industries have suffered a decline as steep as coal’s. In just five years, the coal industry has gone from relatively healthy to almost entirely bankrupt. Major coal producers – including Peabody Energy, Arch Coal, and Alpha Natural Resources … Continue reading
American Water Works (AWK) Update
2015 has been another strong year for the stock of American Water Works (AWK). Year-to-date (through Dec. 18), it is up 11.7% on price and has delivered a 14.5% total return. By comparison, the S&P 500 is down 2.6% on … Continue reading
Consolidated Water (CWCO) 2015 Third Quarter Update
Consolidated Water (CWCO) reported 2015 third quarter earnings of $0.12 per share, compared with $0.13 per share in the prior year comparable quarter. Revenues of $14.6 million, were down 14% from $17.0 million last year. Both earnings and revenues fell … Continue reading