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American Water (AWK) to Post Q3 Earnings: What's in Store?
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American Water Works Company (AWK - Free Report) is set to release third-quarter 2022 results on Oct 31, after market close. In the last reported quarter, the company delivered an earnings surprise of 5.3%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
American Water’s third-quarter earnings are expected to have benefited from efficient cost management and new water rates effective in different territories. It got approval for the implementation of new rates worth $182 million from Jan 1, 2022, which is likely to have a positive impact on its third-quarter earnings.
The ongoing addition in customer volume due to acquisitions and organic means is likely to have increased the demand for water and wastewater services as well as boosted earnings in the third quarter. The Military Service Group received its first Navy contract during the third quarter. Existing contracts and the new ones are likely to have contributed to its third-quarter earnings.
Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.50 per share, indicating a year-over-year decline of 1.96% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.02 billion, indicating a year-over-year decline of 6.65% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
American Water Works Company, Inc. Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water currently has a Zacks Rank #3.
Stocks to Consider
Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
NextEra Energy (NEE - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct 28 before market open. NextEra Energy has an Earnings ESP of +0.63% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for 2022 earnings per share is currently pegged at $2.89, reflecting year-over-year growth of 13.33%.
WEC Energy Group (WEC - Free Report) is set to release third-quarter 2022 results on Nov 1. WEC has an Earnings ESP of +4.41% and a Zacks Rank #3.
The Zacks Consensus Estimate for 2022 earnings of WEC Energy is $4.39 per share, which indicates a year-over-year growth of 6.81%.
Pinnacle West Capital Corp. (PNW - Free Report) is set to release third-quarter 2022 results on Nov 3. PNW has an Earnings ESP of +1.66% and a Zacks Rank #2.
The Zacks Consensus Estimate for 2022 earnings of Pinnacle West Capital is $4.01 per share, which indicates a year-over-year decline of 26.69%.
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American Water (AWK) to Post Q3 Earnings: What's in Store?
American Water Works Company (AWK - Free Report) is set to release third-quarter 2022 results on Oct 31, after market close. In the last reported quarter, the company delivered an earnings surprise of 5.3%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
American Water’s third-quarter earnings are expected to have benefited from efficient cost management and new water rates effective in different territories. It got approval for the implementation of new rates worth $182 million from Jan 1, 2022, which is likely to have a positive impact on its third-quarter earnings.
The ongoing addition in customer volume due to acquisitions and organic means is likely to have increased the demand for water and wastewater services as well as boosted earnings in the third quarter. The Military Service Group received its first Navy contract during the third quarter. Existing contracts and the new ones are likely to have contributed to its third-quarter earnings.
Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.50 per share, indicating a year-over-year decline of 1.96% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.02 billion, indicating a year-over-year decline of 6.65% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water currently has a Zacks Rank #3.
Stocks to Consider
Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
NextEra Energy (NEE - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct 28 before market open. NextEra Energy has an Earnings ESP of +0.63% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for 2022 earnings per share is currently pegged at $2.89, reflecting year-over-year growth of 13.33%.
WEC Energy Group (WEC - Free Report) is set to release third-quarter 2022 results on Nov 1. WEC has an Earnings ESP of +4.41% and a Zacks Rank #3.
The Zacks Consensus Estimate for 2022 earnings of WEC Energy is $4.39 per share, which indicates a year-over-year growth of 6.81%.
Pinnacle West Capital Corp. (PNW - Free Report) is set to release third-quarter 2022 results on Nov 3. PNW has an Earnings ESP of +1.66% and a Zacks Rank #2.
The Zacks Consensus Estimate for 2022 earnings of Pinnacle West Capital is $4.01 per share, which indicates a year-over-year decline of 26.69%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.