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American Water (AWK) Q3 Earnings & Revenues Beat Estimates
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American Water Works Company (AWK - Free Report) posted third-quarter 2018 earnings per share of $1.20, which beat the Zacks Consensus Estimate of $1.16 by 3.5%. The figure also improved 11.1% year over year. The uptick was supported by solid growth in Regulated and Market-Based businesses during the third quarter.
The company reported GAAP earnings of $1.04 compared with $1.13 in the year-ago quarter.
Total Revenues
Total revenues of $976 million surpassed the Zacks Consensus Estimate of $956 million and the year-ago figure of $936 million by 2.1% and 4.3%, respectively.
American Water Works Price, Consensus and EPS Surprise
Total operating expenses in the quarter were $641 million, up 27.2% from the year-ago quarter. The increase was primarily led by higher general taxes, along with greater operation and maintenance expenses compared with the year-ago levels.
Operating income was $335 million, down 22.4% year over year.
Segment Details
Regulated businesses’ net income was $213 million, up 7% from $199 million in the year-ago quarter. Regulated businesses added 16,500 customers on a year-to-date basis through acquisitions and organic growth. The company is looking forward to add another 56,000 customers through pending acquisitions.
Market-Based businesses’ net income was $23 million compared with $14 million in the year-ago quarter. The year-over-year increase can be attributed to growth in Homeowner Services Group, along with lower-than-expected Pivotal Home Solutions integration expenses during the quarter
Financial Highlights
Cash and cash equivalents were $86 million as of Sep 30, 2018, up 56.4% from Dec 31, 2017 level.
Long-term debt was $7,570 million as of Sep 30, 2018, higher than $6,490 million on Dec 31, 2017.
In the first nine months of 2018, the company made capital investments of $1.5 billion.
Guidance
American Water Works narrowed the high end of 2018 earnings per share guided range to $3.27-$3.32 per share from $3.22-$3.32 projected earlier.
American Water plans to invest $2.0-$2.1 billion, including the acquisition of Pivotal Home Solutions in 2018.
Aqua America Inc. is expected to report third-quarter 2018 results on Nov 5. The Zacks Consensus Estimate for earnings is pegged at 43 cents.
American States Water Company (AWR - Free Report) is scheduled to report third-quarter 2018 results on Nov 5. The Zacks Consensus Estimate for earnings is pegged at 60 cents.
Consolidated Water Company Ltd (CWCO - Free Report) is likely to report third-quarter 2018 results on Nov 8. The Zacks Consensus Estimate for earnings is pegged at 15 cents.
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American Water (AWK) Q3 Earnings & Revenues Beat Estimates
American Water Works Company (AWK - Free Report) posted third-quarter 2018 earnings per share of $1.20, which beat the Zacks Consensus Estimate of $1.16 by 3.5%. The figure also improved 11.1% year over year. The uptick was supported by solid growth in Regulated and Market-Based businesses during the third quarter.
The company reported GAAP earnings of $1.04 compared with $1.13 in the year-ago quarter.
Total Revenues
Total revenues of $976 million surpassed the Zacks Consensus Estimate of $956 million and the year-ago figure of $936 million by 2.1% and 4.3%, respectively.
American Water Works Price, Consensus and EPS Surprise
American Water Works Price, Consensus and EPS Surprise | American Water Works Quote
Highlights of the Release
Total operating expenses in the quarter were $641 million, up 27.2% from the year-ago quarter. The increase was primarily led by higher general taxes, along with greater operation and maintenance expenses compared with the year-ago levels.
Operating income was $335 million, down 22.4% year over year.
Segment Details
Regulated businesses’ net income was $213 million, up 7% from $199 million in the year-ago quarter. Regulated businesses added 16,500 customers on a year-to-date basis through acquisitions and organic growth. The company is looking forward to add another 56,000 customers through pending acquisitions.
Market-Based businesses’ net income was $23 million compared with $14 million in the year-ago quarter. The year-over-year increase can be attributed to growth in Homeowner Services Group, along with lower-than-expected Pivotal Home Solutions integration expenses during the quarter
Financial Highlights
Cash and cash equivalents were $86 million as of Sep 30, 2018, up 56.4% from Dec 31, 2017 level.
Long-term debt was $7,570 million as of Sep 30, 2018, higher than $6,490 million on Dec 31, 2017.
In the first nine months of 2018, the company made capital investments of $1.5 billion.
Guidance
American Water Works narrowed the high end of 2018 earnings per share guided range to $3.27-$3.32 per share from $3.22-$3.32 projected earlier.
American Water plans to invest $2.0-$2.1 billion, including the acquisition of Pivotal Home Solutions in 2018.
Zacks Rank
American Water Works currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Aqua America Inc. is expected to report third-quarter 2018 results on Nov 5. The Zacks Consensus Estimate for earnings is pegged at 43 cents.
American States Water Company (AWR - Free Report) is scheduled to report third-quarter 2018 results on Nov 5. The Zacks Consensus Estimate for earnings is pegged at 60 cents.
Consolidated Water Company Ltd (CWCO - Free Report) is likely to report third-quarter 2018 results on Nov 8. The Zacks Consensus Estimate for earnings is pegged at 15 cents.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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