Middlesex Water Co. (MSEX) hit a 52-week high of $22.97 on Nov 12, finally closing a penny lower at $22.96 per share with a traded volume of nearly 21,877 shares.
Headquartered in New Jersey, Middlesex Water operates primarily through its nine subsidiaries to provide regulated and unregulated water and wastewater service to residents of New Jersey and Delaware. The company caters to about 60,000 retail customers, largely in eastern Middlesex County, NJ.
Middlesex Water’s third-quarter earnings escalated 16.7% year over year to 42 cents per share. Revenues also improved 4.5% from last year.
Behind the Rise?
Last month, Tidewater Utilities, Inc., a subsidiary of Middlesex Water, commenced water production and distribution system operations at the Dover Air Force Base (DAFB) in Dover, DE. Under a 50-year agreement, Tidewater will provide portable water services to DAFB. The subsidiary will also retain and improvise all the water utility assets of DAFB to provide them with reliable services.
In Jun 2014, the New Jersey Board of Public Utilities (BPU) approved a $4.2 million increase in base water rates for Middlesex Water consumers located in central New Jersey. This favorable rate approval drove the water utility’s earnings in the last quarter and is expected to continue doing so in the quarters ahead.
In addition, this Zacks Rank #3 (Hold) company has persistently shared its profit with the stakeholders in the form of dividend payouts. Middlesex Water’s stable revenue stream through its regulated business, judicious investments in infrastructure rehabilitation and astute organic growth strategy will be accretive to its earnings.
Key Picks from the Sector
Better-ranked stocks in the broader utility space include Black Hills Corporation (BKH), PG&E Corporation (PCG) and Unitil Corp. (UTL). All three stocks currently sport a Zacks Rank #1 (Strong Buy).
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