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American States Water (AWR) Down 1.1% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for American States Water (AWR - 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 Q1 Earnings & Revenues Beat Mark

American States Water reported first-quarter 2021 operating earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 8.3%. Also, the bottom line improved 36.8% from the year-ago quarter’s earnings of 38 cents per share.

Total Revenues

Operating revenues of $117.1 million beat the Zacks Consensus Estimate of $114 million by 2.7%. Also, the top line improved 7.3% from $109.1 million in the prior-year quarter.

Operational Update

In the quarter under review, American States Water’s total operating expenses were $86.7 million, up 4% year over year. This can primarily be attributed to increase in water purchased, power purchased for pumping, power purchased for resale and groundwater production assessment expenses.

Operating income was $30.3 million, up 18% year over year.

Interest expenses were $6.3 million, up 3.4% year over year. Interest income was $0.5 million, down 18.5% from the prior-year quarter.

Segment Details

Earnings in the Water segment were 33 cents per share, up from 24 cents in the prior-year quarter. This upside was mainly driven by a higher water gross margin, resulting from new rates authorized by the California Public Utilities Commission.

Earnings in the Electric segment of 7 cents per share were up from 6 cents in the year-ago quarter. The rise was owing to a higher electric gross margin along with lower interest expenses.

Earnings in the Contracted Services segment were 12 cents per share, up from 8 cents in the year-ago quarter. This was led by a ramped-up construction activity and a decline in legal and other outside services costs.

Financial Update

As of Mar 31, 2021, American States Water’s cash and cash equivalents were $7 million compared with $36.7 million as of Dec 31, 2020.

As of Mar 31, 2021, the company’s long-term debt was $440.3 million, on par with the figure as of Dec 31, 2020.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, American States Water has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

American States Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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