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Can American Water (AWK) Pull Off a Surprise in Q2 Earnings?
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American Water Works Company (AWK - Free Report) is scheduled to report second-quarter 2017 results after the market closes on Aug 2. Last quarter, the company’s earnings were in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for the second quarter.
Factors to Consider
American Water continues to expand its operation through strategic acquisitions, which are going to extend its market reach and increase its customer base. Thanks to ongoing acquisitions and organic growth, the company has added nearly 16,700 customers to its existing base.
The new rates that are approved from January this year will increase its total revenue by $46.9 million annually. Military Service Group performance was below expectations due to lower capital upgrades and could be a headwind in the second quarter as well.
Earnings Whispers
Our proven model does not conclusively show that American Water is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: American Water’s Earnings ESP is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 80 cents.
Zacks Rank: The company holds a Zacks Rank #2 (Buy), which increases the possibility of an earnings surprise. However, its 0.00% ESP makes a beat unlikely this season.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
American Water does not have the correct mix to come up with an earnings surprise this season. However, the following companies from the Zacks categorized Utility sector have the right combination of elements to post an earnings beat this quarter.
ALLETE Inc. (ALE - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 2.
IDAC ORP Inc. (IDA - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 3.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Can American Water (AWK) Pull Off a Surprise in Q2 Earnings?
American Water Works Company (AWK - Free Report) is scheduled to report second-quarter 2017 results after the market closes on Aug 2. Last quarter, the company’s earnings were in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for the second quarter.
Factors to Consider
American Water continues to expand its operation through strategic acquisitions, which are going to extend its market reach and increase its customer base. Thanks to ongoing acquisitions and organic growth, the company has added nearly 16,700 customers to its existing base.
The new rates that are approved from January this year will increase its total revenue by $46.9 million annually. Military Service Group performance was below expectations due to lower capital upgrades and could be a headwind in the second quarter as well.
Earnings Whispers
Our proven model does not conclusively show that American Water is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: American Water’s Earnings ESP is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 80 cents.
American Water Works Price and EPS Surprise
American Water Works Price and EPS Surprise | American Water Works Quote
Zacks Rank: The company holds a Zacks Rank #2 (Buy), which increases the possibility of an earnings surprise. However, its 0.00% ESP makes a beat unlikely this season.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
American Water does not have the correct mix to come up with an earnings surprise this season. However, the following companies from the Zacks categorized Utility sector have the right combination of elements to post an earnings beat this quarter.
NiSource Inc. (NI - Free Report) has an Earnings ESP of +10.0% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALLETE Inc. (ALE - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 2.
IDAC ORP Inc. (IDA - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>