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Artesian Resources Q2 net income rises

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Overview

  • Artesian Q2 net income rises 18.1% to $6.3 mln, driven by higher water sales

  • Q2 revenue increases 4.1% to $28.5 mln, supported by Distribution System Improvement Charges and SLPP revenue growth

  • Co enters new 4-year electric supply deal, at an electric supply rate approximately 25% over the prior rate

Outlook

  • Company focuses on infrastructure investments for long-term sustainability

  • Artesian Resources emphasizes addressing emerging contaminants for future compliance

Result Drivers

  • WATER SALES - Increase in water sales revenue driven by Distribution System Improvement Charges and a temporary rate increase

  • WASTEWATER GROWTH - Growth in wastewater customer base contributed to higher utility operating revenue

  • SLPP REVENUE - Increase in Service Line Protection Plan rates led to higher non-utility operating revenue

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Water Sales

$23.08 mln

Q2 EPS

$0.61

Q2 Net Income

$6.29 mln

Q2 Basic EPS

$0.61

Q2 Operating Income

$7.86 mln

Q2 Utility Operating Expenses

$12.50 mln

Analyst Coverage

  • The one available analyst rating on the shares is "strong buy"

  • The average consensus recommendation for the water & related utilities peer group is "buy."

  • Wall Street's median 12-month price target for Artesian Resources Corp is $46.00, about 28.7% above its August 1 closing price of $32.82

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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