We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Water (AWK) to Report Q2 Earnings: What's in Store?
Read MoreHide Full Article
American Water Works Company (AWK - Free Report) is set to release second-quarter 2020 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 3.1%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
American Water has been enjoying the benefits of both organic and inorganic initiatives. The company has a predominantly residential customer base. Higher demand from the residential group for water and wastewater services as well as stay-at-home directives are likely to have had a positive impact on second-quarter earnings, and offset the decline from commercial and industrial customer groups. In addition, the new water rates worth $53 million that came into effect since Jan 1, 2020 are likely to have boosted second-quarter earnings.
During the second quarter, American Water — through its subsidiaries — ensured no disconnection of utility services due to nonpayment of dues. This might have affected the bottom line to some extent.
Expectation
The Zacks Consensus Estimate for second-quarter earnings is pegged at 96 cents per share, which indicates year-over-year growth of 2.13%. The Zacks Consensus Estimate for total revenues is pegged at $916.9 million, which indicates year-over-year growth of 3.95%.
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. That is not the case here as you will see below.
American Water Works Company, Inc. Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is +1.18%. 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 #2.
Other Stocks to Consider
Here are a few other companies worth considering from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.
American States Water Company (AWR - Free Report) is set to release second-quarter 2020 numbers on Aug 3. It has an Earnings ESP of +2.19% and carries a Zacks Rank #3.
CenterPoint Energy (CNP - Free Report) is set to release second-quarter 2020 numbers on Aug 6. It has an Earnings ESP of +7.87% and carries a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Water (AWK) to Report Q2 Earnings: What's in Store?
American Water Works Company (AWK - Free Report) is set to release second-quarter 2020 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 3.1%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
American Water has been enjoying the benefits of both organic and inorganic initiatives. The company has a predominantly residential customer base. Higher demand from the residential group for water and wastewater services as well as stay-at-home directives are likely to have had a positive impact on second-quarter earnings, and offset the decline from commercial and industrial customer groups. In addition, the new water rates worth $53 million that came into effect since Jan 1, 2020 are likely to have boosted second-quarter earnings.
During the second quarter, American Water — through its subsidiaries — ensured no disconnection of utility services due to nonpayment of dues. This might have affected the bottom line to some extent.
Expectation
The Zacks Consensus Estimate for second-quarter earnings is pegged at 96 cents per share, which indicates year-over-year growth of 2.13%. The Zacks Consensus Estimate for total revenues is pegged at $916.9 million, which indicates year-over-year growth of 3.95%.
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. That is not the case here as you will see below.
American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
Earnings ESP: The company’s Earnings ESP is +1.18%. 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 #2.
Other Stocks to Consider
Here are a few other companies worth considering from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.
Essential Utilities (WTRG - Free Report) is set to release second-quarter 2020 numbers on Aug 5. It has an Earnings ESP of +7.74% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American States Water Company (AWR - Free Report) is set to release second-quarter 2020 numbers on Aug 3. It has an Earnings ESP of +2.19% and carries a Zacks Rank #3.
CenterPoint Energy (CNP - Free Report) is set to release second-quarter 2020 numbers on Aug 6. It has an Earnings ESP of +7.87% and carries a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>