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American States Water (AWR) Q3 Earnings Lag, Revenues Rise Y/Y

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American States Water Company (AWR - Free Report) reported third-quarter 2021 operating earnings of 76 cents per share, which missed the Zacks Consensus Estimate of 77 cents by 1.3%. The bottom line, however, improved 5.6% from the year-ago quarter’s earnings of 72 cents per share.

Total Revenues

Operating revenues of $136.8 million missed the Zacks Consensus Estimate of $140 million by 2.3%. However, the top line improved 2.3% from $133.7 million in the prior-year quarter.

 

Operational Update

In the quarter under review, American States Water’s total operating expenses were $94 million, up 0.1% year over year. This can primarily be attributed to an increase in water purchased, power purchased for pumping and power purchased for resale expenses.

Operating income was $42.8 million, up 7.5% year over year.

Interest expenses were $5.6 million, down 9.9% year over year. Interest income was $0.3 million, up 5.4% from the prior-year quarter’s level.

Segment Details

Earnings in the Water segment were 62 cents per share, up from 57 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 on par with the year-ago quarter’s reading as higher electric’s operating revenues were offset by increased operating expenses.

Earnings in the Contracted Services segment were 11 cents per share, up from 10 cents in the year-ago quarter owing to a decline in the overall operating expenses.

Financial Update

As of Sep 30, 2021, American States Water’s cash and cash equivalents were $7.1 million compared with $36.7 million as of Dec 31, 2020.

As of Sep 30, 2021, the company’s long-term debt was $412.1 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 third-quarter 2021 earnings of $1.20 per share, outperforming the Zacks Consensus Estimate of 79 cents by 51.9%.

Middlesex Water (MSEX - Free Report) posted third-quarter 2021 earnings of 65 cents per share, missing the Zacks Consensus Estimate of 78 cents.

Essential Utilities (WTRG - Free Report) recorded third-quarter 2021 earnings of 19 cents per share, missing the Zacks Consensus Estimate of 22 cents.