## Middlesex Water (MSEX) Earnings Preview: What to Expect on October 31st
Investors are eagerly awaiting Middlesex Water’s (MSEX) upcoming quarterly earnings report, scheduled for Thursday, October 31st, 2024. This report is a crucial event for investors as it provides valuable insights into the company’s financial performance and future outlook.
Key Analyst Estimates and Expectations:
Analysts project that Middlesex Water will report an earnings per share (EPS) of $0.68. Investors are keen to see if the company surpasses these estimates, especially considering the importance of guidance in shaping stock price movements. In the previous earnings release, Middlesex Water missed EPS by $0.05, resulting in a 0.83% drop in the share price the following trading session.
Historical Earnings Performance:
To gain a better understanding of Middlesex Water’s earnings trends, let’s examine its past performance:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|————-|————–|————|——————|
| Q2 2024 | 0.64 | 0.59 | -1.0% |
| Q1 2024 | 0.46 | 0.59 | 5.0% |
| Q4 2023 | 0.52 | 0.32 | 1.0% |
| Q3 2023 | 0.87 | 0.56 | -3.0% |
Analyst Insights and Ratings:
Analysts have provided Middlesex Water with 1 rating, resulting in a consensus rating of Neutral. The average one-year price target stands at $58.0, suggesting a potential 8.68% downside.
Peer Analysis and Market Positioning:
To gain a comprehensive understanding of Middlesex Water’s performance within the industry, it’s essential to compare it to its peers. Let’s delve into the analyst ratings and average 1-year price targets of three key players in the utilities sector:
*
SJW Gr:
Analyst sentiment is Neutral, with an average 1-year price target of $63.0, implying a potential 0.8% downside.*
Essential Utilities:
Analysts hold a Buy rating, with an average 1-year price target of $44.75, implying a potential 29.54% downside.*
American Water Works:
The consensus outlook from analysts is Underperform, with an average 1-year price target of $142.0, indicating a potential 123.59% upside.Comprehensive Peer Analysis Summary:
| Company | Consensus Rating | Revenue Growth (%) | Gross Profit ($) | Return on Equity (%) |
|———————–|——————-|———————|——————-|———————–|
| Middlesex Water | Neutral | 14.82 | $27.32M | 2.44 |
| SJW Gr | Neutral | 12.29 | $97.82M | 1.65 |
| Essential Utilities | Buy | -0.53 | $258.17M | 1.23 |
| American Water Works | Underperform | 4.74 | $722M | 2.75 |
Key Takeaway:
Middlesex Water ranks in the middle for Consensus rating among its peers. It is at the bottom for Revenue Growth but at the top for Gross Profit and Return on Equity.Unveiling the Story Behind Middlesex Water:
Middlesex Water Co. is a leading provider of regulated water and wastewater services in the United States. The company operates primarily in the eastern states of New Jersey, Delaware, and Pennsylvania. It has two operating segments: Regulated and Non-Regulated. The Regulated business focuses on collecting and distributing water to residential, commercial, and industrial customers, while the Non-Regulated segment provides contract services for the operation of private water and wastewater systems. The majority of the company’s revenue is generated from the Regulated segment and residential customers.
Financial Insights:
*
Market Capitalization Analysis:
Middlesex Water’s market capitalization falls below industry benchmarks, indicating a smaller size compared to its peers. This could be influenced by factors such as growth expectations or operational capacity.*
Revenue Growth:
Middlesex Water achieved a strong revenue growth rate of approximately 14.82% as of June 30th, 2024. This outperforms the average growth rate among peers in the Utilities sector.*
Net Margin:
The company’s net margin of 21.4% demonstrates strong profitability and effective cost control, exceeding industry averages.*
Return on Equity (ROE):
With an ROE of 2.44%, Middlesex Water excels beyond industry benchmarks, reflecting robust financial management and efficient use of shareholder equity capital.*
Return on Assets (ROA):
Middlesex Water’s ROA of 0.83% surpasses industry standards, highlighting the company’s exceptional financial performance and effective asset utilization.*
Debt Management:
Middlesex Water maintains a debt-to-equity ratio of 1.01, lower than the industry average. This indicates a lower reliance on debt financing and a healthier balance between debt and equity, which can be viewed positively by investors.To track all earnings releases for Middlesex Water, visit our earnings calendar on our website.
