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American Water (AWK) to Post Q2 Earnings: What's in the Offing?
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American Water Works Company (AWK - Free Report) is set to release second-quarter 2023 results on Jul 26, after market close. In the last four reported quarters, the company delivered an average earnings surprise of 5.04%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
American Water Works’ second-quarter earnings are expected to have benefited from new water rates, effective in different territories. It received approval for the implementation of new rates worth $279 million, effective Jan 1, 2023, which is likely to have had a positive impact on its second-quarter earnings.
AWK continues to expand operations through acquisitions and those completed in the first half of 2023 are likely to have boosted earnings in the second quarter.
However, the increase in interest rates is a concern as the company is planning to invest multi-billion dollars to strengthen and expand infrastructure. The issue of new shares can have a dilutive impact on earnings.
Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.26 per share, indicating a year-over-year increase of 5% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $975.4 million, indicating year-over-year growth of 4.1% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 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 -0.20%. 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.
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.
The Zacks Consensus Estimate for 2023 earnings of NEE is $3.11 per share, which indicates year-over-year growth of 7.24%.
Public Service Enterprise Group (PEG - Free Report) is set to release second-quarter 2023 results on Aug 1. PEG has an Earnings ESP of +15.20% and a Zacks Rank #2.
The Zacks Consensus Estimate for 2023 earnings of Public Service Enterprise is $3.44 per share, remaining unchanged in the past 60 days.
Entergy (ETR - Free Report) is set to release second-quarter 2023 results on Aug 2. ETR has an Earnings ESP of +1.14% and a Zacks Rank #2.
The Zacks Consensus Estimate for 2023 earnings of Entergy is $6.67 per share, indicating year-over-year growth of 3.89%.
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American Water (AWK) to Post Q2 Earnings: What's in the Offing?
American Water Works Company (AWK - Free Report) is set to release second-quarter 2023 results on Jul 26, after market close. In the last four reported quarters, the company delivered an average earnings surprise of 5.04%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
American Water Works’ second-quarter earnings are expected to have benefited from new water rates, effective in different territories. It received approval for the implementation of new rates worth $279 million, effective Jan 1, 2023, which is likely to have had a positive impact on its second-quarter earnings.
AWK continues to expand operations through acquisitions and those completed in the first half of 2023 are likely to have boosted earnings in the second quarter.
However, the increase in interest rates is a concern as the company is planning to invest multi-billion dollars to strengthen and expand infrastructure. The issue of new shares can have a dilutive impact on earnings.
Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.26 per share, indicating a year-over-year increase of 5% from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $975.4 million, indicating year-over-year growth of 4.1% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 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 -0.20%. 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.
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 set to release second-quarter 2023 results on Jul 25. NEE has an Earnings ESP of +2.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 2023 earnings of NEE is $3.11 per share, which indicates year-over-year growth of 7.24%.
Public Service Enterprise Group (PEG - Free Report) is set to release second-quarter 2023 results on Aug 1. PEG has an Earnings ESP of +15.20% and a Zacks Rank #2.
The Zacks Consensus Estimate for 2023 earnings of Public Service Enterprise is $3.44 per share, remaining unchanged in the past 60 days.
Entergy (ETR - Free Report) is set to release second-quarter 2023 results on Aug 2. ETR has an Earnings ESP of +1.14% and a Zacks Rank #2.
The Zacks Consensus Estimate for 2023 earnings of Entergy is $6.67 per share, indicating year-over-year growth of 3.89%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.