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Water Utilities to Report Earnings on Aug 3: AWR, AWK, ARTNA
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We have well surpassed the half-way mark of second-quarter earnings releases with nearly 63% of S&P 500 members having already announced their results as of Jun 29, with earnings declining 3.3% on a 0.9% drop in revenues from the same period last year. As for the beat ratios, 72.9% of the companies have come ahead of earnings estimates and 53.6% have surpassed revenue expectations.
If we take into consideration this week’s scheduled second-quarter earnings releases of 116 S&P 500 members, the total S&P 500 index release will touch nearly 87% by the end of this week. The picture that has emerged so far shows clearly that we are into another season of an earnings decline for the S&P 500 index. Earnings growth is projected to be in negative territory for the fifth straight quarter.
Eight out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline. Overall, earnings are expected to be down 3.4% from the same period last year on a 0.4% decline in revenues. The largest drop will come not unsurprisingly from the Energy sector where earnings are expected to plunge 84% from the same period last year on a 26% decline in revenues (read more in our weekly Earnings Preview report).
Against this backdrop, let us focus on the water utility space, which is now under public glare with reports from the U.S. Environmental Protection Agency showing that an investment of around $384 billion will be required over the next 20 years to modernize and upgrade the old, soiled and decaying U.S. water and wastewater systems. So, the regulated water industry has immense opportunities in the offing for investors willing to ride the growth.
The success story of the water utilities lies in increasing demand for fresh water due to an ever-increasing global population as well as rapid urbanization. Growing demand for fresh water – which accounts for a meager 2.5% of the world’s total water content – is boosting the prospects of these operators.
Here, let us focus on a few water utilities reporting on Aug 3:
American Water Works Company (AWK - Free Report) , a Zacks Rank #2 (Buy) stock, reported on par earnings in the previous quarter. American Water Works’ Earnings ESP which represents the difference between the Most Accurate estimate of 76 cents and the Zacks Consensus Estimate of 72 cents is +5.56% (read more: Can American Water Works Beat on Earnings in Q2?).
American States Water Company (AWR - Free Report) , a Zacks Rank #3 (Hold) stock, provides fresh water, wastewater services and electricity to its customers in the United States. In the previous quarter, this water utility reported a negative earnings surprise of 17.65%.
American States Water Company has an Earnings ESP of -6.67% as the Most Accurate estimate stands at 42 cents, while the Zacks Consensus Estimate is pegged higher at 45 cents.
Artesian Resources Corporation (ARTNA - Free Report) , a Zacks Rank #3 stock, provides water, wastewater, and other services on the Delmarva Peninsula. Artesian Resources Corporation has an Earnings ESP of 0.00%.
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Water Utilities to Report Earnings on Aug 3: AWR, AWK, ARTNA
We have well surpassed the half-way mark of second-quarter earnings releases with nearly 63% of S&P 500 members having already announced their results as of Jun 29, with earnings declining 3.3% on a 0.9% drop in revenues from the same period last year. As for the beat ratios, 72.9% of the companies have come ahead of earnings estimates and 53.6% have surpassed revenue expectations.
If we take into consideration this week’s scheduled second-quarter earnings releases of 116 S&P 500 members, the total S&P 500 index release will touch nearly 87% by the end of this week. The picture that has emerged so far shows clearly that we are into another season of an earnings decline for the S&P 500 index. Earnings growth is projected to be in negative territory for the fifth straight quarter.
Eight out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline. Overall, earnings are expected to be down 3.4% from the same period last year on a 0.4% decline in revenues. The largest drop will come not unsurprisingly from the Energy sector where earnings are expected to plunge 84% from the same period last year on a 26% decline in revenues (read more in our weekly Earnings Preview report).
Against this backdrop, let us focus on the water utility space, which is now under public glare with reports from the U.S. Environmental Protection Agency showing that an investment of around $384 billion will be required over the next 20 years to modernize and upgrade the old, soiled and decaying U.S. water and wastewater systems. So, the regulated water industry has immense opportunities in the offing for investors willing to ride the growth.
The success story of the water utilities lies in increasing demand for fresh water due to an ever-increasing global population as well as rapid urbanization. Growing demand for fresh water – which accounts for a meager 2.5% of the world’s total water content – is boosting the prospects of these operators.
Here, let us focus on a few water utilities reporting on Aug 3:
American Water Works Company (AWK - Free Report) , a Zacks Rank #2 (Buy) stock, reported on par earnings in the previous quarter. American Water Works’ Earnings ESP which represents the difference between the Most Accurate estimate of 76 cents and the Zacks Consensus Estimate of 72 cents is +5.56% (read more: Can American Water Works Beat on Earnings in Q2?).
AMER WATER WORK Price, Consensus and EPS Surprise
AMER WATER WORK Price, Consensus and EPS Surprise | AMER WATER WORK Quote
American States Water Company (AWR - Free Report) , a Zacks Rank #3 (Hold) stock, provides fresh water, wastewater services and electricity to its customers in the United States. In the previous quarter, this water utility reported a negative earnings surprise of 17.65%.
AMER STATES WTR Price and EPS Surprise
AMER STATES WTR Price and EPS Surprise | AMER STATES WTR Quote
American States Water Company has an Earnings ESP of -6.67% as the Most Accurate estimate stands at 42 cents, while the Zacks Consensus Estimate is pegged higher at 45 cents.
Artesian Resources Corporation (ARTNA - Free Report) , a Zacks Rank #3 stock, provides water, wastewater, and other services on the Delmarva Peninsula. Artesian Resources Corporation has an Earnings ESP of 0.00%.
ARTESIAN RES Price and EPS Surprise
ARTESIAN RES Price and EPS Surprise | ARTESIAN RES Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>