We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Water (AWK) Q1 Earnings Beat Estimates, Revenues Lag
Read MoreHide Full Article
American Water Works Company (AWK - Free Report) posted first-quarter 2022 operating earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate of 75 cents by 16%. The bottom line improved by 19.2% from the year-ago earnings of 73 cents per share.
Total Revenues
Total revenues of $842 million lagged the Zacks Consensus Estimate of $872 million by 3.4%. The top line also declined by 5.2% from the year-ago figure of $888 million.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
Total operating expenses for the first quarter amounted to $596 million, down 10.8% from the year-ago quarter’s $659 million, due to a decrease in the operating and maintenance expenses.
Operating income was $242 million, up 5.7% from the year-ago figure of $229 million. The new rates effective since Jan 1, 2022 will boost annual revenues by $79 million and the pending rate case, if approved without any change, will further increase the top line by $220 million.
American Water Works continues to expand operations through acquisitions and organic means. Upto Mar 31, 2022, it added 1,800 customers to its customer base through four closed acquisitions in two states. AWK’s pending acquisitions (as of Mar 31), when completed, will add another 77,300 customers through 32 acquisitions. American Water Works added nearly 5,500 customers year to date from the closed acquisitions.
American Water Works invested $437 million, including $430 million for infrastructure improvements, in Regulated businesses for the first three months of 2022.
Segment Details
Regulated businesses’ net income in the first quarter of 2022 was $160 million compared with $135 million in the year-ago quarter.
Market-Based businesses reported a net loss of $2 million in the first quarter of 2022 and 2021.
Financial Highlights
Cash and cash equivalents amounted to $75 million as of Mar 31, 2022, down 35.3% from $116 million as of Dec 31, 2021.
The total long-term debt was $10,350 million as of Mar 31, 2022, up 0.1% from $10,344 million as of Dec 31, 2021.
Guidance
American Water Works affirmed the 2022 earnings guidance in the range of $4.39-$4.49 per share. The Zacks Consensus Estimate for 2022 earnings of $4.46 per share is higher than $4.44, the midpoint of the guided range. AWK reiterated the long-term earnings growth in the range of 7-9% for the 2022-2026 period.
American States Water Co. (AWR - Free Report) is slated to report first-quarter 2022 earnings on May 2 after market close. The Zacks Consensus Estimate for American States Water’s first-quarter EPS is pegged at 54 cents.
The Zacks Consensus Estimate for AWR’s 2022 earnings implies year-over-year growth of 6.5%.
Global Water Resources (GWRS - Free Report) is slated to report first-quarter 2022 earnings on May 5 before market opens. Global Water Resources’ long-term earnings growth is currently pegged at 15%.
The Zacks Consensus Estimate for GWRS’ 2023 earnings implies year-over-year growth of 25%.
Essential Utilities Inc. (WTRG - Free Report) is slated to report first-quarter 2022 earnings on May 9 after market close. The Zacks Consensus Estimate for Essential Utilities’ first-quarter EPS is pegged at 72 cents.
The Zacks Consensus Estimate for WTRG’s 2022 earnings implies year-over-year growth of 5.9%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
American Water (AWK) Q1 Earnings Beat Estimates, Revenues Lag
American Water Works Company (AWK - Free Report) posted first-quarter 2022 operating earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate of 75 cents by 16%. The bottom line improved by 19.2% from the year-ago earnings of 73 cents per share.
Total Revenues
Total revenues of $842 million lagged the Zacks Consensus Estimate of $872 million by 3.4%. The top line also declined by 5.2% from the year-ago figure of $888 million.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. Quote
Highlights of the Release
Total operating expenses for the first quarter amounted to $596 million, down 10.8% from the year-ago quarter’s $659 million, due to a decrease in the operating and maintenance expenses.
Operating income was $242 million, up 5.7% from the year-ago figure of $229 million. The new rates effective since Jan 1, 2022 will boost annual revenues by $79 million and the pending rate case, if approved without any change, will further increase the top line by $220 million.
American Water Works continues to expand operations through acquisitions and organic means. Upto Mar 31, 2022, it added 1,800 customers to its customer base through four closed acquisitions in two states. AWK’s pending acquisitions (as of Mar 31), when completed, will add another 77,300 customers through 32 acquisitions. American Water Works added nearly 5,500 customers year to date from the closed acquisitions.
American Water Works invested $437 million, including $430 million for infrastructure improvements, in Regulated businesses for the first three months of 2022.
Segment Details
Regulated businesses’ net income in the first quarter of 2022 was $160 million compared with $135 million in the year-ago quarter.
Market-Based businesses reported a net loss of $2 million in the first quarter of 2022 and 2021.
Financial Highlights
Cash and cash equivalents amounted to $75 million as of Mar 31, 2022, down 35.3% from $116 million as of Dec 31, 2021.
The total long-term debt was $10,350 million as of Mar 31, 2022, up 0.1% from $10,344 million as of Dec 31, 2021.
Guidance
American Water Works affirmed the 2022 earnings guidance in the range of $4.39-$4.49 per share. The Zacks Consensus Estimate for 2022 earnings of $4.46 per share is higher than $4.44, the midpoint of the guided range. AWK reiterated the long-term earnings growth in the range of 7-9% for the 2022-2026 period.
Zacks Rank
American Water Works currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Releases
American States Water Co. (AWR - Free Report) is slated to report first-quarter 2022 earnings on May 2 after market close. The Zacks Consensus Estimate for American States Water’s first-quarter EPS is pegged at 54 cents.
The Zacks Consensus Estimate for AWR’s 2022 earnings implies year-over-year growth of 6.5%.
Global Water Resources (GWRS - Free Report) is slated to report first-quarter 2022 earnings on May 5 before market opens. Global Water Resources’ long-term earnings growth is currently pegged at 15%.
The Zacks Consensus Estimate for GWRS’ 2023 earnings implies year-over-year growth of 25%.
Essential Utilities Inc. (WTRG - Free Report) is slated to report first-quarter 2022 earnings on May 9 after market close. The Zacks Consensus Estimate for Essential Utilities’ first-quarter EPS is pegged at 72 cents.
The Zacks Consensus Estimate for WTRG’s 2022 earnings implies year-over-year growth of 5.9%.