It has been about a month since the last earnings report for American States Water (AWR Quick QuoteAWR - Free Report) . Shares have lost about 1.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American States Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

American States Water Q3 Earnings & Revenues Miss Mark

American States Water Company reported third-quarter 2020 operating earnings of 72 cents per share, which missed the Zacks Consensus Estimate of 75 cents by 4%. Also, the bottom line improved 4.3% from year-ago quarter’s adjusted earnings of 69 cents.

Total Revenues

Operating revenues of $133.7 million missed the Zacks Consensus Estimate of $136 million by 1.7%. Also, the top line dipped 0.6% from $134.5 million in the prior-year quarter. Total revenues decreased primarily due to lower revenues in Electric and Contracted services segments.

Operational Update

In the quarter under review, American States Water’s total operating expenses were $93.9 million, up 2.3% year over year.

Operating income was $39.8 million, down 6.8% year over year.

Interest expenses were $6.2 million, down 1.9% year over year. Also, interest income was $0.3 million, down from $0.8 million in the prior-year quarter.

Segment Details

Earnings in the Water segment were 57 cents, up from 53 cents in the prior-year quarter.

Earnings in the Electric segment of 4 cents were up from 3 cents in the year-ago quarter.

Earnings in the Contracted Services segment were 10 cents, down from 12 cents in the year-ago quarter.

Financial Update

As of Sep 30, 2020, American States Water’s cash and cash equivalents were $8.1 million compared with $1.3 million as of Dec 31, 2019.

As of Sep 30, 2020, the company’s long-term debt was$440.3 million, up from $281 million as of Dec 31, 2019.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

VGM Scores

Currently, American States Water has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, American States Water has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.