American Water (AWK) to Report Q3 Earnings: What's in Store?

Zacks Equity Research Published on October 28, 2021

American Water Works Company (AWK - Free Report) is set to release third-quarter 2021 results on Nov 2. In the last quarter, the company delivered an earnings surprise of 5.6%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

The ongoing increase in residential customer volume due to acquisitions and organic means is likely to have increased the demand for water and wastewater services as well as boosted earnings in the third quarter.

Further, American Water’s third-quarter earnings are expected to have benefited from efficient cost management. New rates worth $146 million were implemented in its service territories, which is also likely to have boosted third-quarter earnings.

Expectations

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at $1.52 per share and $1.1 billion, indicating year-over-year growth of 4.1% and 1.5%, respectively, from the year-ago reported figures.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for American Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: The company’s Earnings ESP is +1.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Water currently has a Zacks Rank #3.

Other Stocks to Consider

Here are a few other companies worth considering from the same sector that too have the right combination of elements to beat on earnings in the upcoming releases.

American States Water Company (AWR - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2021 results on Nov 1 after the market closes. It has an Earnings ESP of +1.96% and has a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Essential Utilities (WTRG - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2021 results on Nov 1 before the market opens. It has an Earnings ESP of +1.54% and a Zacks Rank of 3, currently.

Sempra Energy (SRE - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2021 results on Nov 5 before the market opens. It has an Earnings ESP of +0.59% and a Zacks Rank of 3, at present.

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