WALL, N.J. - New Jersey Resources Corporation (NYSE: NYSE:NJR) has reported a robust second quarter for fiscal 2024, surpassing analyst expectations with earnings per share (EPS) of $1.41, which is $0.17 higher than the estimated $1.24. Revenue for the quarter was also strong at $657.91 million, although it fell short of the consensus estimate of $737.95 million.
The company's second-quarter net financial earnings (NFE) showed a significant increase to $138.6 million, or $1.41 per share, up from $112.3 million, or $1.16 per share, in the same quarter of the previous fiscal year.
This growth is attributed to the company's Energy Services division capitalizing on natural gas price volatility early in the quarter.
President and CEO Steve Westhoven highlighted the company's diversified business model and commitment to shareholder value, noting the $0.15 increase in fiscal 2024 NFEPS guidance range made in February due to strong performance.
The reaffirmed NFEPS guidance for fiscal 2024 stands at $2.85 to $3.00, with the midpoint of $2.925 comparing favorably to the analyst consensus.
New Jersey Natural Gas (NJNG), the company's principal subsidiary, reported a second-quarter fiscal 2024 NFE of $107.1 million, up from $100.7 million in the corresponding quarter of the previous fiscal year. This improvement was driven by higher utility gross margin from BGSS incentive programs, despite increased depreciation and operating expenses.
NJNG's customer base continued to expand, adding 4,058 new customers in the first half of fiscal 2024. Moreover, NJNG filed a rate case seeking a $222.6 million increase in delivery rates, reflecting a 55.42 percent common equity component.
The company's capital expenditures for the first half of fiscal 2024 amounted to $232.6 million, with cash flows from operations at $338.6 million. These figures demonstrate NJR's commitment to maintaining a strong financial profile.
Despite the mixed results with revenue falling below consensus, the positive EPS beat and the reaffirmed guidance for the fiscal year have provided investors with confidence in NJR's financial health and strategic direction.
The stock movement following the earnings release was not specified, indicating that the market's reaction may have been within the 2% threshold, suggesting a more measured investor response.
For more information on NJR's financial performance and business developments, please visit www.njresources.com.
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