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American Water (AWK) to Post Q4 Earnings: What Awaits?
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American Water Works Company (AWK - Free Report) is set to release fourth-quarter 2023 results on Feb 14, after market close. In the last four quarters, the company delivered an average earnings surprise of 6.5%.
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 new water rates, effective in different territories. It received approval for implementing new rates worth $359 million, effective Jan 1, 2023, which is likely to have had a positive impact on its fourth-quarter earnings.
AWK continues to expand operations through inorganic methods. Those completed in 2023 are likely to have expanded operations and boosted demand and earnings in the quarter to be reported.
However, higher chemical costs might offset some benefits in the fourth quarter.
Expectations
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 84 cents per share, indicating a year-over-year increase of 3.7% from the year-ago reported figure.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at nearly $959.2 million, indicating year-over-year growth of 3% 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 -0.90%. 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 #2.
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 Southern Company (SO - Free Report) is set to beat the earnings estimate when it releases fourth-quarter 2023 results on Feb 15. SO has an Earnings ESP of +2.95% and a Zacks Rank #2.
The Zacks Consensus Estimate of Southern Company’s fourth-quarter 2023 earnings is 59 cents per share, reflecting year-over-year growth of 126.9%.
The Zacks Consensus Estimate of Dominion Energy’s fourth-quarter 2023 earnings is 40 cents per share, indicating a year-over-year decrease of 62.2%.
Sempra Energy (SRE - Free Report) is set to beat earnings estimates when it releases fourth-quarter 2023 results on Feb 27. SRE has an Earnings ESP of +1.18% and a Zacks Rank #2.
The Zacks Consensus Estimate earnings of Sempra Energy’s fourth-quarter 2023 earnings is $1.13 per share, indicating year-over-year growth of 4.24%.
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American Water (AWK) to Post Q4 Earnings: What Awaits?
American Water Works Company (AWK - Free Report) is set to release fourth-quarter 2023 results on Feb 14, after market close. In the last four quarters, the company delivered an average earnings surprise of 6.5%.
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 new water rates, effective in different territories. It received approval for implementing new rates worth $359 million, effective Jan 1, 2023, which is likely to have had a positive impact on its fourth-quarter earnings.
AWK continues to expand operations through inorganic methods. Those completed in 2023 are likely to have expanded operations and boosted demand and earnings in the quarter to be reported.
However, higher chemical costs might offset some benefits in the fourth quarter.
Expectations
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 84 cents per share, indicating a year-over-year increase of 3.7% from the year-ago reported figure.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at nearly $959.2 million, indicating year-over-year growth of 3% 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 -0.90%. 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 #2.
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 Southern Company (SO - Free Report) is set to beat the earnings estimate when it releases fourth-quarter 2023 results on Feb 15. SO has an Earnings ESP of +2.95% and a Zacks Rank #2.
The Zacks Consensus Estimate of Southern Company’s fourth-quarter 2023 earnings is 59 cents per share, reflecting year-over-year growth of 126.9%.
Dominion Energy (D - Free Report) is set to release fourth-quarter 2023 results on Feb 22. D has an Earnings ESP of +0.63% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate of Dominion Energy’s fourth-quarter 2023 earnings is 40 cents per share, indicating a year-over-year decrease of 62.2%.
Sempra Energy (SRE - Free Report) is set to beat earnings estimates when it releases fourth-quarter 2023 results on Feb 27. SRE has an Earnings ESP of +1.18% and a Zacks Rank #2.
The Zacks Consensus Estimate earnings of Sempra Energy’s fourth-quarter 2023 earnings is $1.13 per share, indicating year-over-year growth of 4.24%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.