Wednesday, water or wastewater services provider Aqua America, Inc. (WTR) reported a 28.3% year-over-year rise in profit for the first quarter, helped by cost management as well as revenue growth. Earnings per share rose and came in line with analysts' expectations, while quarterly revenues increased 10.9% and topped consensus estimate. The company also announced an 8% increase in quarterly dividend.
In a statement, chairman and chief executive officer, Nicholas DeBenedictis said, "The strong financial results this quarter are a reflection of our focus on completing key rate cases over the past year to begin to recover a fair return on the major investments Aqua has made to improve its water and wastewater systems, while also diligently managing operating expenses."
The Bryn Mawr, Pennsylvania-based company reported net income of $18.37 million or $0.14 per share for the first quarter, higher than $ $14.32 million or $0.11 per share in the prior-year quarter.
On average, seven analysts polled by Thomson Reuters expected the company report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.
Total operating revenues for the quarter increased 10.9% to $154.49 million from $139.28 million in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $150.76 million.
Operating income for the first quarter rose to $46.77 million from $40.22 million in the prior-year quarter, while total cost and expenses was $107.72 million, up from $99.07 million in the year-ago quarter.
On May 1, Aqua America declared an 8% higher quarterly cash dividend payment from last year of $0.135 per share, payable on June 1, to all shareholders of record on May 18, 2009.
In April, Standard and Poor's reiterated its 'A+' corporate credit rating, excellent business risk profile and intermediate financial risk profile for the company's largest operating subsidiary, Aqua Pennsylvania, Inc.
Looking ahead…….."Aqua plans to continue to invest a record amount of approximately $300 million in 2009, which not only enhances water quality and reliability for our customers but also leads to economic and job growth in the areas in which we operate." DeBenedictis added.
WTR closed Tuesday's regular trading session at $17.67, down $0.43 or 2.38% on a volume of 1.36 million shares, lower than the three-month average volume of 1.20 million shares.
For comments and feedback: editorial@rttnews.com