We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American States Water (AWR) Q4 Earnings Surpass Estimates
Read MoreHide Full Article
American States Water Company (AWR - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of 55 cents, which beat the Zacks Consensus Estimate of 53 cents by 3.8%. The bottom line increased 10% from the year-ago quarter’s 50 cents.
Earnings per share for 2023 were $2.85, up 27.2% year over year from the $2.24 reported in 2022.
Total Revenues
Operating revenues came in at $125.2 million, missing the Zacks Consensus Estimate of $132 million by 2.2%. The top line is also a tad lower than $125.3 million reported in the prior year.
Total revenues for 2023 were $595.7 million, up 21.2% year over year.
American States Water Company Price, Consensus and EPS Surprise
Operating expenses in the quarter were $90.3 million, down 7.6% from the year-ago quarter’s $97.7 million. This can be attributed to lower ASUS construction expenses.
Operating income totaled $34.9 million, up 26.4% from $27.6 million in the corresponding period of 2022.
Interest expenses were $10.8 million, up 38.5% year over year. Interest income totaled $1.6 million, up 72.9% year-over-year.
AWR continues to pay dividend to its shareholders and raised annual dividend rate by 8.2% in 2023. Management has approved dividend increase each calendar year for 69 consecutive years.
Segmental Details
Earnings from the Water segment amounted to 41 cents per share, up 46.4% from 28 cents a year ago. This year-over-year improvement was due to rate increases.
Earnings from the Electric segment were recorded at 7 cents per share, which was down 12.5% year over year. The decline was due to an increase in operating costs and interest expenses. Having no new rates in 2023 also impacted performance.
The same from the Contracted Services segment came in at 12 cents per share, down 29.4% year over year. The downtick was due to a decrease in construction activity resulting from timing differences of when such work was performed throughout 2023 compared with 2022.
The loss from AWR (Parent) was 4 cents per share, wider than a loss of 3 cents a year ago. This was due to a hike in interest expense resulting from higher short-term interest rates.
Financial Update
As of Dec 31, 2023, AWR’s cash and cash equivalents totaled $14.1 million compared with $5.9 million as of Dec 31, 2022.
As of Dec 31, 2023, the company’s long-term debt was $575.5 million compared with $446.5 million as of Dec 31, 2022.
In 2023, cash provided by operating activities totaled $67.7 million compared with $117.8 million in 2022.
California Water Service Group (CWT - Free Report) will release its fourth-quarter 2023 earnings on Feb 29. The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.50 reflects growth of 328.57% from the year-ago levels.
CWT reported earning surprise of 11.1% in its last reported quarter.
Global Water Resources, Inc. (GWRS - Free Report) will release its fourth-quarter 2023 earnings on Mar 7. The Zacks Consensus Estimate for fourth-quarter earnings per share of 5 cents reflects growth of 25% from the year-ago levels.
Long-term (three to five years) earnings growth rate of GWRS is currently pegged at 15%. The company delivered an average four-quarter earnings surprise of 27.08%.
Essential Utilities Inc. (WTRG - Free Report) will report fourth-quarter 2023 earnings on Feb 22, after market close. The Zacks Consensus Estimate for fourth-quarter earnings per share of 49 cents reflects growth of 11.4% from the year-ago levels.
Long-term earnings growth rate of WTRG is currently pegged at 5.6%. The company delivered an earnings surprise of 3.45% in its last reported quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
American States Water (AWR) Q4 Earnings Surpass Estimates
American States Water Company (AWR - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of 55 cents, which beat the Zacks Consensus Estimate of 53 cents by 3.8%. The bottom line increased 10% from the year-ago quarter’s 50 cents.
Earnings per share for 2023 were $2.85, up 27.2% year over year from the $2.24 reported in 2022.
Total Revenues
Operating revenues came in at $125.2 million, missing the Zacks Consensus Estimate of $132 million by 2.2%. The top line is also a tad lower than $125.3 million reported in the prior year.
Total revenues for 2023 were $595.7 million, up 21.2% year over year.
American States Water Company Price, Consensus and EPS Surprise
American States Water Company price-consensus-eps-surprise-chart | American States Water Company Quote
Highlights of the Release
Operating expenses in the quarter were $90.3 million, down 7.6% from the year-ago quarter’s $97.7 million. This can be attributed to lower ASUS construction expenses.
Operating income totaled $34.9 million, up 26.4% from $27.6 million in the corresponding period of 2022.
Interest expenses were $10.8 million, up 38.5% year over year. Interest income totaled $1.6 million, up 72.9% year-over-year.
AWR continues to pay dividend to its shareholders and raised annual dividend rate by 8.2% in 2023. Management has approved dividend increase each calendar year for 69 consecutive years.
Segmental Details
Earnings from the Water segment amounted to 41 cents per share, up 46.4% from 28 cents a year ago. This year-over-year improvement was due to rate increases.
Earnings from the Electric segment were recorded at 7 cents per share, which was down 12.5% year over year. The decline was due to an increase in operating costs and interest expenses. Having no new rates in 2023 also impacted performance.
The same from the Contracted Services segment came in at 12 cents per share, down 29.4% year over year. The downtick was due to a decrease in construction activity resulting from timing differences of when such work was performed throughout 2023 compared with 2022.
The loss from AWR (Parent) was 4 cents per share, wider than a loss of 3 cents a year ago. This was due to a hike in interest expense resulting from higher short-term interest rates.
Financial Update
As of Dec 31, 2023, AWR’s cash and cash equivalents totaled $14.1 million compared with $5.9 million as of Dec 31, 2022.
As of Dec 31, 2023, the company’s long-term debt was $575.5 million compared with $446.5 million as of Dec 31, 2022.
In 2023, cash provided by operating activities totaled $67.7 million compared with $117.8 million in 2022.
Zacks Rank
American States Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
California Water Service Group (CWT - Free Report) will release its fourth-quarter 2023 earnings on Feb 29. The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.50 reflects growth of 328.57% from the year-ago levels.
CWT reported earning surprise of 11.1% in its last reported quarter.
Global Water Resources, Inc. (GWRS - Free Report) will release its fourth-quarter 2023 earnings on Mar 7. The Zacks Consensus Estimate for fourth-quarter earnings per share of 5 cents reflects growth of 25% from the year-ago levels.
Long-term (three to five years) earnings growth rate of GWRS is currently pegged at 15%. The company delivered an average four-quarter earnings surprise of 27.08%.
Essential Utilities Inc. (WTRG - Free Report) will report fourth-quarter 2023 earnings on Feb 22, after market close. The Zacks Consensus Estimate for fourth-quarter earnings per share of 49 cents reflects growth of 11.4% from the year-ago levels.
Long-term earnings growth rate of WTRG is currently pegged at 5.6%. The company delivered an earnings surprise of 3.45% in its last reported quarter.