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Why Is American States Water (AWR) Down 4.6% Since Last Earnings Report?

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A month has gone by since the last earnings report for American States Water (AWR - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American States Water due for a breakout? 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 catalysts.

American States Water Q1 Earnings & Sales Beat Estimates

American States Water Company reported first-quarter 2024 operating earnings per share (EPS) of 62 cents, which beat the Zacks Consensus Estimate of 59 cents by 5.1%.

Total Revenues

Operating revenues came in at $135.2 million, surpassing the Zacks Consensus Estimate of $119 million by 13.7%. However, the top line declined 16% from $161 million reported in the prior year.

Highlights of the Release

Operating expenses in the quarter were $96.3 million, down 12.7% from the year-ago quarter’s $110.3 million. Lower water purchased expenses and purchased power expenses, along with other reasons lowered total operating expenses.

Operating income totaled $38.9 million, down 24% from $51.2 million in the corresponding period of 2023.

Interest expenses were $12.8 million, up 35.8% year over year. Interest income totaled $2.1 million, up 11% year over year.

During the quarter, the company successfully started its operation of the water and wastewater systems at two military bases.

Segmental Details

Earnings from the Water segment amounted to 48 cents per share, down 35.1% from 74 cents a year ago.

Earnings from the Electric segment were 5 cents per share, which was a penny down from the year-ago quarter. The decline was primarily due to lack of new rates in the reported quarter.

The same from the Contracted Services segment came in at 13 cents per share, down 13.3% year over year. The decline was due to an increase in operating expenses and difference in timing of construction activity performed in 2024.

The loss from AWR (Parent) was 3 cents per share, wider than a loss of 2 cents a year ago.

Financial Update

As of Mar 31, AWR’s cash and cash equivalents totaled $17 million compared with $14.1 million as of Dec 31, 2023.

As of Mar 31, the company’s long-term debt was $575.3 million compared with $575.5 million as of Dec 31, 2023.

In the first-quarter of 2024, cash provided by operating activities totaled $45.8 million compared with $6.9 million in the first-quarter of 2023.


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 an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.


American States Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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