DOVER, Del. – Chesapeake Utilities Corporation (NYSE: NYSE:CPK) reported lower-than-expected earnings and revenue for the fourth quarter, missing Wall Street estimates. The company's earnings per share (EPS) for the quarter was $1.26, falling short of the analyst consensus of $1.56. Revenue also came in below expectations at $185.3 million, against the anticipated $234.6 million.
The energy delivery company's stock fell 2% in response to the earnings release, signaling investor disappointment with the quarterly financial performance. The downturn was primarily driven by the earnings and revenue shortfall, with the EPS missing estimates by $0.30 and revenue trailing by a significant margin.
Despite the challenges faced in the quarter, including warmer than normal temperatures impacting customer consumption, Chesapeake Utilities highlighted its 17th year of consecutive record earnings, excluding transaction costs from its recent acquisition of Florida City Gas (FCG). The acquisition, completed on November 30, 2023, is expected to contribute to future growth as the company integrates the new business and leverages its operational and regulatory expertise.
Jeff Householder, the president and CEO of Chesapeake Utilities, commented on the company's resilience and strategic execution, stating, "Our team executed on all fronts, with our legacy businesses continuing to make growth investments, advance regulatory initiatives and prudently manage expenses." He also emphasized the company's commitment to achieving its 2025 guidance of $6.15-$6.35 per share and introduced guidance for 2024 in the range of $5.33-$5.45 per share, marking it as a transitional year.
The company's full-year 2023 adjusted EPS, which excludes transaction-related expenses, was $5.31, reflecting a 5.4% increase over the previous year's $5.04 per share. This growth was attributed to regulatory initiatives, organic growth in the natural gas distribution businesses, pipeline expansion projects, increased propane margins and fees, and the incremental margin from FCG.
For 2024, Chesapeake Utilities anticipates generating EPS between $5.33 and $5.45, considering the investment opportunities and operating synergies following the FCG acquisition. The company also reaffirmed its 2025 EPS guidance range of $6.15 to $6.35 and its 2028 EPS guidance range of $7.75 to $8.00 per share, suggesting an EPS growth rate of approximately 8% from the current 2025 guidance range.
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