Northwest Natural Gas (NYSE:NWN) has reported its quarterly earnings, revealing a positive outcome that exceeded analysts’ expectations. The utility provider announced earnings per share (EPS) of $1.39 for the quarter, surpassing the consensus estimate of $1.36 by $0.03. This performance was detailed in a report released on October 27, 2023, by FiscalAI.
The company achieved a return on equity of 8.30% and a net margin of 7.94%. Revenue for the quarter totaled $394.16 million, which, while lower than the expected $419.36 million, marked a 6.3% increase compared to the same period last year. In the prior year, Northwest Natural Gas reported an EPS of $1.41.
Updated Financial Guidance and Market Reaction
In light of its quarterly performance, Northwest Natural has revised its fiscal year 2026 guidance, projecting an EPS range of $2.950 to $3.150. Following the earnings report, shares of Northwest Natural Gas opened at $53.11, reflecting a significant increase of 5.6%. The company’s current stock performance is buoyed by its 50-day moving average of $47.78 and a two-hundred day moving average of $45.86. Over the past year, the company’s stock has fluctuated, reaching a low of $38.94 and a high of $53.48.
Northwest Natural boasts a market capitalization of $2.20 billion, with a debt-to-equity ratio of 1.48. The company’s current ratio stands at 0.59, while its quick ratio is 0.43. The price-to-earnings (P/E) ratio is noted at 21.16, alongside a beta of 0.57.
Institutional Investment and Analyst Ratings
Recent activities by hedge funds indicate a growing interest in Northwest Natural Gas. Mercer Global Advisors Inc. ADV acquired a new position worth approximately $277,000 in the third quarter. Quantinno Capital Management LP also increased its stake by 33.0% during the second quarter, now holding 6,958 shares valued at around $276,000. Cetera Investment Advisers and Oxford Asset Management LLP also expanded their holdings, contributing to a total institutional ownership of 75.13%.
Several brokerage firms have updated their ratings for Northwest Natural Gas. BTIG Research reaffirmed its “buy” rating with a price target of $55.00. Weiss Ratings maintained a “hold (c)” rating, while Stifel Nicolaus raised its price objective from $50.00 to $52.00, also issuing a “buy” rating. Currently, two analysts recommend buying the stock, while three suggest holding it, with an average target price of $51.33 according to MarketBeat data.
As Northwest Natural Gas continues to navigate the complexities of the energy market, its strategic focus remains on delivering value to shareholders while maintaining robust operational performance. Headquartered in Portland, Oregon, the company has a long-standing history in the natural gas distribution sector, serving residential, commercial, and industrial customers across the region.
With its extensive pipeline network and commitment to customer service, Northwest Natural is poised to adapt to future market challenges and opportunities.
