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What's in the Offing for American Water's (AWK) Q4 Earnings?

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American Water Works Company (AWK - Free Report) is set to release fourth-quarter 2020 results on Feb 25. In the last reported quarter, the company delivered an earnings surprise of 5.8%.

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. As the company has a predominantly residential customer base, demand from residential customers for water and wastewater services is likely to have had a positive impact on fourth-quarter earnings.

American Water’s fourth-quarter earnings are also expected to have benefited from efficient cost management and the implementation of new rates in its service territories.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at 80 cents per share and $925.5 million, indicating year-over-year growth of 9.6% and 2.6%, respectively, from the year-ago reported figures.

What the Zacks Model Unveils

Our proven model does not conclusively predict 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.

Earnings ESP: The company’s Earnings ESP is -0.13%. 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.

Stocks to Consider

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

Exelon Corporation (EXC - Free Report) is set to release fourth-quarter 2020 numbers on Feb 24.  It presently has an Earnings ESP of +2.34% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Essential Utilities (WTRG - Free Report) is set to release fourth-quarter 2020 numbers on Feb 24. It has an Earnings ESP of +5.49% and carries a Zacks Rank #3, at present.

Sempra Energy (SRE - Free Report) is set to release fourth-quarter 2020 numbers on Feb 25. It currently has an Earnings ESP of +6.45% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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