American States Water Company (AWR - Free Report) reported second-quarter 2017 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 45 cents by 37.8%.
The outperformance came on the back of higher contribution from its Water and Contracted Services segments.
Revenue
American States Water’s operating revenues in the quarter were $113.2 million, surpassing the Zacks Consensus Estimate of $107 million by 5.8%. Revenues also increased 1.1% year over year.
Operational Update
In the quarter under review, American States Water’s total operating expenses were $71.4 million, down 12.3% year over year.
American States Water’s interest expenses were $5.9 million, up 5.4% year over year.
Segment Details
Water segment earnings during the quarter were 48 cents, up 33.3% year over year. The upside was due the recognition of a pretax gain of $8.3 million. This gain was partially offset by a decrease in the water gross margin of $1.8 million.
Electric segment earnings were 2 cents, rising 100% year over year. This was primarily due to lower consulting and outside service costs, further supported by lower-effective income tax rate for the electric segment.
Contracted Services segment earnings increased 71.4% to 12 cents as a result of the U.S. government’s approval of the third price redetermination for Fort Bragg in North Carolina, retroactive to Mar 2016. This helped the company gain excess of $1.6 million, in additional management fee revenue.
Financial Update
As of Jun 30, American States Water’s cash and cash equivalents were $2.1 million compared with $0.4 million as of Dec 31, 2016.
The company’s long-term debts amounted to $321 million, in line with the figure of Dec 31, 2016.
Net cash from operating activities in the first half of 2017 was $75.4 million, up from $48.5 million in the year-ago period.
Zacks Rank
American States Water currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Releases
Connecticut Water Service, Inc. is expected to release second-quarter earnings on Aug 8. The Zacks Consensus Estimate for the quarter is pegged at 68 cents.
Consolidated Water Co. Ltd. (CWCO - Free Report) is expected to release second-quarter earnings on Aug 9. The Zacks Consensus Estimate for the quarter is pegged at 16 cents.
Global Water Resource Inc. (GWRS - Free Report) is scheduled to release second-quarter earnings on Aug 8. The Zacks Consensus Estimate for the quarter is pegged at 4 cents.
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American States Water Company (AWR - Free Report) reported second-quarter 2017 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 45 cents by 37.8%.
The outperformance came on the back of higher contribution from its Water and Contracted Services segments.
Revenue
American States Water’s operating revenues in the quarter were $113.2 million, surpassing the Zacks Consensus Estimate of $107 million by 5.8%. Revenues also increased 1.1% year over year.
Operational Update
In the quarter under review, American States Water’s total operating expenses were $71.4 million, down 12.3% year over year.
American States Water’s interest expenses were $5.9 million, up 5.4% year over year.
Segment Details
Water segment earnings during the quarter were 48 cents, up 33.3% year over year. The upside was due the recognition of a pretax gain of $8.3 million. This gain was partially offset by a decrease in the water gross margin of $1.8 million.
Electric segment earnings were 2 cents, rising 100% year over year. This was primarily due to lower consulting and outside service costs, further supported by lower-effective income tax rate for the electric segment.
Contracted Services segment earnings increased 71.4% to 12 cents as a result of the U.S. government’s approval of the third price redetermination for Fort Bragg in North Carolina, retroactive to Mar 2016. This helped the company gain excess of $1.6 million, in additional management fee revenue.
Financial Update
As of Jun 30, American States Water’s cash and cash equivalents were $2.1 million compared with $0.4 million as of Dec 31, 2016.
The company’s long-term debts amounted to $321 million, in line with the figure of Dec 31, 2016.
Net cash from operating activities in the first half of 2017 was $75.4 million, up from $48.5 million in the year-ago period.
Zacks Rank
American States Water currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Releases
Connecticut Water Service, Inc. is expected to release second-quarter earnings on Aug 8. The Zacks Consensus Estimate for the quarter is pegged at 68 cents.
Consolidated Water Co. Ltd. (CWCO - Free Report) is expected to release second-quarter earnings on Aug 9. The Zacks Consensus Estimate for the quarter is pegged at 16 cents.
Global Water Resource Inc. (GWRS - Free Report) is scheduled to release second-quarter earnings on Aug 8. The Zacks Consensus Estimate for the quarter is pegged at 4 cents.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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