Aqua America Upgraded To 'Buy' On Strong 1Q Profit

NEW YORK (AP) — Aqua America Inc.'s strong first-quarter results and recent share price drop prompted an analyst to upgrade the water and sewage utility Tuesday.

Janney Montgomery Scott's Debra Coy upgraded the stock to "Buy" from "Neutral," saying in a client note that encouraging first-quarter results "indicated that the company was poised to return to solid earnings growth in 2009."

Earlier this month the Bryn Mawr, Pa., company said its first-quarter profit rose 28 percent to $18.4 million, or 14 cents per share, compared with $14.3 million, or 11 cents per share during the same period last year, while revenue jumped 11 percent to $154.5 million from $139.3 million.

Analysts polled by Thomson Reuters expected an average profit of 14 cents per share on revenue of $150.8 million.

Coy said that she expects a full-year profit of 81 cents per share, an 11.5 percent increase from 2008 and the first year of double digit earnings growth in four years. For 2010 Coy estimated earnings of 86 cents per share.

Analysts forecast a full-year 2009 profit of 84 cents per share, and a 2010 profit of 92 cents per share. Aqua America did not provide full-year estimates.