PORTLAND, Ore. - Northwest Natural Holding Company (NYSE: NWN), also known as NW Natural, reported a decline in first-quarter earnings and missed analyst estimates for both earnings per share (EPS) and revenue.
The company announced a net income of $63.8 million, or $1.69 per share, for the first quarter of 2024, falling short of the analyst consensus of $1.79 per share. Revenue for the quarter was reported at $433.47 million, which also did not meet the expected $447.89 million.
Compared to the same period last year, NW Natural's net income decreased by $7.8 million from $71.7 million, or $2.01 per share. This decline was attributed to higher pension expenses, increased depreciation from ongoing investments in the utility system, and higher interest expenses.
Despite the challenges, NW Natural added nearly 15,000 gas and water utility connections, achieving a 1.7% growth rate as of March 31, 2024. The company also highlighted the performance of its gas system during a winter storm in January, delivering a record 9.0 million therms on a single day, including a new withdrawal record from its on-system gas storage facility in Mist, Oregon.
NW Natural's CEO, David H. Anderson, emphasized the company's commitment to providing safe and reliable energy, especially during extreme weather events. He also expressed pride in NW Natural Holdings being named one of the World's Most Ethical Companies® by Ethisphere for the third consecutive year.
For the full year 2024, NW Natural reaffirmed its earnings guidance in the range of $2.20 to $2.40 per share. This guidance reflects the company's expectations for continued customer growth and average weather conditions.
However, the midpoint of this guidance range is below the analyst consensus of $2.29 per share. The company expects a loss in the second quarter in the range of -$0.08 to -$0.16 per share, compared to the consensus of $0.00, and a loss in the third quarter in the range of -$0.74 to -$0.86 per share, compared to the consensus of -$0.80.
Earnings for the fourth quarter are projected to be in the range of $1.43 to $1.63 per share, surpassing the consensus of $1.25.
Following the earnings release, NW Natural's stock experienced a marginal drop of 0.2%, indicating a relatively muted market response to the earnings miss.
The board of directors declared a quarterly dividend of 48.75 cents per share, payable on May 15, 2024, to shareholders of record on April 30, 2024. The company's indicated annual dividend rate stands at $1.95 per share.
NW Natural Holdings continues to focus on strategic investments and maintaining the integrity of its service commitments, aiming to meet its financial goals and capture growth opportunities that add long-term value.
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