Unitil (UTL, Financial) announced its first-quarter revenue, totaling $170.8 million, which fell short of the consensus estimate of $193.03 million. Despite the revenue miss, the company expressed satisfaction with its robust operational and financial performance during the period. Leadership attributes this success to the strength of its core utility businesses and continued progress on strategic goals.
Thomas Meissner, Jr., Chairman and CEO of Unitil, emphasized the company's commitment to creating sustainable long-term value. This is being achieved through recent acquisitions, advancements in regulatory matters, and exceptional customer service. The firm is focused on delivering safe, reliable, and affordable energy to its customers, ensuring it meets its strategic initiatives effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Unitil Corp (UTL, Financial) is $59.00 with a high estimate of $63.00 and a low estimate of $55.00. The average target implies an downside of 1.29% from the current price of $59.77. More detailed estimate data can be found on the Unitil Corp (UTL) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Unitil Corp's (UTL, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Unitil Corp (UTL, Financial) in one year is $56.49, suggesting a downside of 5.49% from the current price of $59.77. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Unitil Corp (UTL) Summary page.
UTL Key Business Developments
Release Date: February 11, 2025
- Adjusted Net Income: $47.8 million for fiscal year 2024.
- Adjusted Earnings Per Share (EPS): $2.97, an increase of $0.15 per share compared to 2023.
- Consolidated Return on Equity: 9.4%.
- Electric Adjusted Gross Margin: $107.3 million, an increase of $3.2 million compared to 2023.
- Gas Adjusted Gross Margin: $166.9 million, an increase of $12.4 million compared to 2023.
- Operation and Maintenance Expenses: Increased by $2 million or 2.6%.
- Depreciation and Amortization: Increased by $8.7 million.
- Interest Expense: Increased by $0.6 million.
- Income Taxes: Increased by $0.8 million.
- 2025 Adjusted Earnings Guidance: Expected to be in the range of $3.01 to $3.17 per share.
- 5-Year Investment Plan: Projected at approximately $980 million through 2029.
- Dividend Increase: Quarterly dividend increased by $0.025 per share, bringing the annual dividend to $1.80 per share in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Unitil Corp (UTL, Financial) reported strong financial performance with adjusted earnings of $47.8 million or $2.97 per share, marking a 5.3% increase over the previous year.
- The acquisition of Bangor Natural Gas is expected to be earnings accretive over the long term, enhancing Unitil Corp (UTL)'s gas operations in Maine.
- Unitil Corp (UTL) maintained high customer satisfaction, with 90% of customers reporting satisfaction, and was the highest-rated among 23 eastern utilities.
- The company completed its gas infrastructure modernization program in Maine, improving system safety and reducing fugitive emissions.
- Unitil Corp (UTL) announced a 5.9% increase in its annual dividend, reflecting strong financial health and commitment to shareholder returns.
Negative Points
- Higher operating expenses partially offset the gains from increased distribution rates and customer growth.
- Depreciation and amortization expenses increased significantly by $8.7 million due to higher depreciation rates and utility plant service levels.
- Interest expenses rose by $0.6 million, driven by higher short-term borrowings and long-term debt levels.
- The integration of Bangor Natural Gas is expected to be earnings neutral in the near term, indicating potential short-term financial pressure.
- Unitil Corp (UTL) faces regulatory challenges, including the need to file a distribution rate case for its New Hampshire subsidiary, which could impact customer bills.
