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American Water (AWK) to Post Q4 Earnings: What's in the Offing?

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American Water Works Company (AWK - Free Report) is set to release fourth-quarter 2022 results on Feb 15, after market close. In the last reported quarter, the company delivered an earnings surprise of 9.4%.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

American Water Works’ fourth-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 $193 million, effective Jan 1, 2022, which is likely to have a positive impact on its fourth-quarter earnings.

Systematic acquisitions and organic assets, along with expanding customer volumes, are likely to have created demand for water and wastewater services, which further might’ve boosted earnings in the fourth quarter.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 76 cents per share, indicating a year-over-year decline of 10.6% from the year-ago reported figure.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $884.1 million, indicating a year-over-year decline of 7.04% from the year-ago reported figure.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for American Water Works 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 the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is +0.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Water Works currently has a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Stocks to Consider

Here are a few companies worth considering from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.

Consolidated Edison Inc. (ED - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 16. Consolidated Edison has an Earnings ESP of +1.59% and carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for 2023 earnings per share is currently pegged at $4.87, reflecting year-over-year growth of 6.74%. ED’s long-term (three- to five-year) earnings growth is pegged at 2%.

Public Service Enterprise Group Incorporated (PEG - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 21. PEG has an Earnings ESP of +2.38% and a Zacks Rank #3.

The Zacks Consensus Estimate for 2023 earnings of Pinnacle West Capital is $3.43 per share, which indicates a year-over-year decline of 0.87%. PEG’s long-term earnings growth is pegged at 2.36%.

SJW Group (SJW - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 22. SJW has an Earnings ESP of +0.97% and a Zacks Rank #3.

The Zacks Consensus Estimate for 2023 earnings of SJW Group is $2.48 per share, which indicates a year-over-year growth of 5.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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