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American States Water (AWR) Q2 Earnings Top, Revenues Rise Y/Y

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American States Water Company (AWR - Free Report) reported second-quarter 2021 operating earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 2.9%. Also, the bottom line improved 4.3% from the year-ago quarter’s earnings of 69 cents per share.

Total Revenues

Operating revenues of $128.4 million beat the Zacks Consensus Estimate of $124 million by 3.6%. Also, the top line improved 5.9% from $121.3 million in the prior-year quarter.

Operational Update

In the quarter under review, American States Water’s total operating expenses were $90.6 million, up 5.9% 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 $37.8 million, up 6% year over year.

Interest expenses were $6 million, up 13.3% year over year. Interest income was $0.3 million, down 29% from the prior-year quarter.

Segment Details

Earnings in the Water segment were 57 cents per share, up from 54 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 (CPUC).

Earnings in the Electric segment of 4 cents per share were up from 3 cents in the year-ago quarter. The rise was owing to a solid electric gross margin resulting from higher customer rates for 2021, approved by the CPUC along with relatively flat operating expenses.

Earnings in the Contracted Services segment were 11 cents per share, down from 12 cents in the year-ago quarter. This can be attributed to a rise in construction costs incurred on certain projects.

Financial Update

As of Jun 30, 2021, American States Water’s cash and cash equivalents were $5.4 million compared with $36.7 million as of Dec 31, 2020.

As of Jun 30, 2021, the company’s long-term debt was $412.3 million, down from $440.3 million as of Dec 31, 2020.

Zacks Rank

American States Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

California Water Service (CWT - Free Report) recorded second-quarter 2021 earnings of 75 cents per share, outperforming the Zacks Consensus Estimate of 37 cents by 102.7%.

American Water Works (AWK - Free Report) recorded second-quarter 2021 earnings of $1.14 per share, outperforming the Zacks Consensus Estimate of $1.08 by 5.6%.

Upcoming Release

Essential Utilities Inc. (WTRG - Free Report) is scheduled to announce second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at 27 cents.