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American States Water (AWR) Up 1.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for American States Water (AWR - Free Report) . Shares have added about 1.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
American States Water Q1 Earnings in Line With Estimates
American States Water Company reported first-quarter 2023 operating earnings per share (EPS) of 54 cents, which was on par with the Zacks Consensus Estimate. The bottom line increased 31.7% from the year-ago quarter’s 41 cents.
Total Revenues
Operating revenues came in at $161.4 million. The top line increased 48.6% from $108.6 million in the prior-year period.
Operational Update
Operating expenses for the quarter amounted to $110.3 million, up nearly 31% from the year-ago quarter’s $84.2 million. This can be attributed to higher operational, administrative and general expenses.
Operating income totaled $51.2 million, up 110% from $24.4 million recorded in the corresponding period of 2022.
Interest expenses came in at $9.5 million, up 69.6% year over year. Interest income totaled $1.9 million, up 559% from the prior-year quarter’s level.
Segmental Details
Earnings from the Water segment amounted to 38 cents per share, up 65.2% from 23 cents a year ago. This was due to an estimated second-year rate increase for 2023 that was effective as of Jan 1, 2023.
Earnings from the Electric segment were recorded at 6 cents per share, which declined 14.3% from the year-ago quarter’s reading.
The same from the Contracted Services segment came in at 15 cents per share, up 87.5% from that recorded in the year-ago quarter. This was due to an increase in management fee revenues resulting from an increase in construction activity and the resolution of various economic price adjustments.
Financial Update
As of Mar 31, 2023, AWR’s cash and cash equivalents totaled $2.1 million compared with $5.9 million as of Dec 31, 2022.
As of Mar 31, 2023, the company’s long-term debt amounted to $576.4 million compared with $446.5 million as of Dec 31, 2022.
Cash provided by operating activities for the first quarter totaled $6.9 million compared with $38 million in the corresponding period of 2022.
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
At this time, American States Water has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile 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 - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended March 2023 more than a month ago.
California Water Service Group reported revenues of $131.1 million in the last reported quarter, representing a year-over-year change of -24.2%. EPS of -$0.40 for the same period compares with $0.02 a year ago.
For the current quarter, California Water Service Group is expected to post earnings of $0.91 per share, indicating a change of +152.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +26.4% over the last 30 days.
California Water Service Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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American States Water (AWR) Up 1.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for American States Water (AWR - Free Report) . Shares have added about 1.9% 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 the most recent earnings report in order to get a better handle on the important drivers.
American States Water Q1 Earnings in Line With Estimates
American States Water Company reported first-quarter 2023 operating earnings per share (EPS) of 54 cents, which was on par with the Zacks Consensus Estimate. The bottom line increased 31.7% from the year-ago quarter’s 41 cents.
Total Revenues
Operating revenues came in at $161.4 million. The top line increased 48.6% from $108.6 million in the prior-year period.
Operational Update
Operating expenses for the quarter amounted to $110.3 million, up nearly 31% from the year-ago quarter’s $84.2 million. This can be attributed to higher operational, administrative and general expenses.
Operating income totaled $51.2 million, up 110% from $24.4 million recorded in the corresponding period of 2022.
Interest expenses came in at $9.5 million, up 69.6% year over year. Interest income totaled $1.9 million, up 559% from the prior-year quarter’s level.
Segmental Details
Earnings from the Water segment amounted to 38 cents per share, up 65.2% from 23 cents a year ago. This was due to an estimated second-year rate increase for 2023 that was effective as of Jan 1, 2023.
Earnings from the Electric segment were recorded at 6 cents per share, which declined 14.3% from the year-ago quarter’s reading.
The same from the Contracted Services segment came in at 15 cents per share, up 87.5% from that recorded in the year-ago quarter. This was due to an increase in management fee revenues resulting from an increase in construction activity and the resolution of various economic price adjustments.
Financial Update
As of Mar 31, 2023, AWR’s cash and cash equivalents totaled $2.1 million compared with $5.9 million as of Dec 31, 2022.
As of Mar 31, 2023, the company’s long-term debt amounted to $576.4 million compared with $446.5 million as of Dec 31, 2022.
Cash provided by operating activities for the first quarter totaled $6.9 million compared with $38 million in the corresponding period of 2022.
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
At this time, American States Water has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile 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 - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended March 2023 more than a month ago.
California Water Service Group reported revenues of $131.1 million in the last reported quarter, representing a year-over-year change of -24.2%. EPS of -$0.40 for the same period compares with $0.02 a year ago.
For the current quarter, California Water Service Group is expected to post earnings of $0.91 per share, indicating a change of +152.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +26.4% over the last 30 days.
California Water Service Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.