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American Water (AWK) to Report Q2 Earnings: What's in Store?

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American Water Works Company (AWK - Free Report) is set to release second-quarter 2021 results on Aug 2. In the last reported quarter, the company’s earnings were on par with estimates.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Ongoing increase in residential customer volume due to acquisitions and organic means is likely to have increased the demand for water and wastewater services as well as boosted earnings in the second quarter.

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

Expectations

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at $1.08 per share and $972.1 million, indicating year-over-year growth of 11.3% and 4.4%, 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 +0.37%. 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 #4 (Sell).

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.

MYR Group Inc. (MYRG - Free Report) is scheduled to release second-quarter 2021 earnings on Jul 28. It has an Earnings ESP of +3.88% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Duke Energy Corporation (DUK - Free Report) is set to release second-quarter 2021 results on Aug 5. It has an Earnings ESP of +0.15% and a Zacks Rank of 3.

NRG Energy, Inc. (NRG - Free Report) is set to release second-quarter 2021 results on Aug 5. It has an Earnings ESP of +33.09% and a Zacks Rank of 3.