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Why Is American States Water (AWR) Up 2% Since Last Earnings Report?
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A month has gone by since the last earnings report for American States Water (AWR - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American States Water due for a pullback? 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 drivers.
American States Water Q4 Earnings Beat, Revenues Fall Y/Y
American States Water Company reported fourth-quarter 2021 operating earnings per share (EPS) of 55 cents, which surpassed the Zacks Consensus Estimate of 50 cents by 10%. The bottom line also improved 1.9% from the year-ago quarter’s earnings of 54 cents per share.
American States Water reported operating EPS of $2.55 in 2021, up 9.4% from $2.33 in 2020, which surpassed the Zacks Consensus Estimate of $2.48 by 3%.
Total Revenues
Operating revenues of $116.6 million missed the Zacks Consensus Estimate of $126 million by 7.5%. The top line narrowed 6.1% from $124.2 million in the prior-year quarter.
American States Water reported total revenues of $498.9 million in 2021, up 2.2% from $488.2 million in 2020, which missed the Zacks Consensus Estimate of $508 million by 1.8%
Operational Update
American States Water’s total operating expenses for the fourth quarter amounted to $87 million, down 8.4% from the year-ago quarter’s $95 million. This can primarily be attributed to a decrease in water purchased, groundwater production assessment and power purchased for resale expenses.
Operating income was $30 million, up 2.4% from the year-ago figure of $29.3 million.
Interest expenses were $5 million, down 0.14% year over year. Interest income was $0.4 million, down 18.3% from the prior-year quarter’s level.
Segment Details
Earnings in the Water segment were 36 cents per share, up 13% from 32 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 on par with the year-ago quarter’s reading as higher operating revenues were offset by increased operating expenses.
Earnings in the Contracted Services segment were 13 cents per share, down 24% from 17 cents in the year-ago quarter due to a decline in the timely construction activity.
Financial Update
As of Dec 31, 2021, AWR’s cash and cash equivalents were $4.9 million compared with $36.7 million as of Dec 31, 2020.
As of Dec 31, 2021, American States Water’s long-term debt was $412.2 million, down from $440.3 million 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 a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is American States Water (AWR) Up 2% Since Last Earnings Report?
A month has gone by since the last earnings report for American States Water (AWR - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American States Water due for a pullback? 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 drivers.
American States Water Q4 Earnings Beat, Revenues Fall Y/Y
American States Water Company reported fourth-quarter 2021 operating earnings per share (EPS) of 55 cents, which surpassed the Zacks Consensus Estimate of 50 cents by 10%. The bottom line also improved 1.9% from the year-ago quarter’s earnings of 54 cents per share.
American States Water reported operating EPS of $2.55 in 2021, up 9.4% from $2.33 in 2020, which surpassed the Zacks Consensus Estimate of $2.48 by 3%.
Total Revenues
Operating revenues of $116.6 million missed the Zacks Consensus Estimate of $126 million by 7.5%. The top line narrowed 6.1% from $124.2 million in the prior-year quarter.
American States Water reported total revenues of $498.9 million in 2021, up 2.2% from $488.2 million in 2020, which missed the Zacks Consensus Estimate of $508 million by 1.8%
Operational Update
American States Water’s total operating expenses for the fourth quarter amounted to $87 million, down 8.4% from the year-ago quarter’s $95 million. This can primarily be attributed to a decrease in water purchased, groundwater production assessment and power purchased for resale expenses.
Operating income was $30 million, up 2.4% from the year-ago figure of $29.3 million.
Interest expenses were $5 million, down 0.14% year over year. Interest income was $0.4 million, down 18.3% from the prior-year quarter’s level.
Segment Details
Earnings in the Water segment were 36 cents per share, up 13% from 32 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 on par with the year-ago quarter’s reading as higher operating revenues were offset by increased operating expenses.
Earnings in the Contracted Services segment were 13 cents per share, down 24% from 17 cents in the year-ago quarter due to a decline in the timely construction activity.
Financial Update
As of Dec 31, 2021, AWR’s cash and cash equivalents were $4.9 million compared with $36.7 million as of Dec 31, 2020.
As of Dec 31, 2021, American States Water’s long-term debt was $412.2 million, down from $440.3 million 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 a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 #4 (Sell). We expect a below average return from the stock in the next few months.