Artesian Resources Q2 net income rises
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
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