It has been about a month since the last earnings report for American States Water (AWR Quick QuoteAWR - Free Report) . Shares have added about 3.7% in that time frame, outperforming 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 Q1 Earnings & Sales Lag Estimates

American States Water Company reported first-quarter 2022 operating earnings per share (EPS) of 38 cents, which lagged the Zacks Consensus Estimate of 54 cents by 29.6%. The bottom line also decreased by 27% from the year-ago quarter’s earnings of 52 cents per share.

Total Revenues

Operating revenues of $108.6 million missed the Zacks Consensus Estimate of $122 million by 11%. The top line narrowed 7.3% from $117.1 million in the prior-year quarter.

Operational Update

American States Water’s total operating expenses for the first quarter amounted to $84.2 million, down 2.9% from the year-ago quarter’s $86.7 million. This can primarily be attributed to a decrease in ground water production assessment expenses and property taxes.

Operating income was $24.4 million, down 19.5% from the year-ago figure of $30.3 million.

Interest expenses were $5.6 million, down 10.4% year over year. Interest income was $0.3 million, down 38% from the prior-year quarter’s level.

Segment Details

Earnings in the Water segment were 23 cents per share, down 30% from 33 cents in the prior-year quarter. This downside was mainly driven by increased operating expenses.

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 8 cents per share, down 33% from 12 cents in the year-ago quarter due to a decline in the timely construction activity.

Financial Update

As of Mar 31, 2022, AWR’s cash and cash equivalents were $10.1 million compared with $4.9 million as of Dec 31, 2021.

As of Mar 31, 2022, American States Water’s long-term debt was $412.1 million compared with $412.2 million as of Dec 31, 2021.

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 nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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 C. 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.

Performance of an Industry Player

American States Water is part of the Zacks Utility - Water Supply industry. Over the past month, California Water Service Group (CWT Quick QuoteCWT - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended March 2022 more than a month ago.

California Water Service Group reported revenues of $172.99 million in the last reported quarter, representing a year-over-year change of +17.1%. EPS of $0.02 for the same period compares with -$0.06 a year ago.

For the current quarter, California Water Service Group is expected to post earnings of $0.60 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

California Water Service Group has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.