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American Water Q4 Earnings & Revenues Beat Estimates, Customers Added
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American Water Works Company (AWK - Free Report) posted fourth-quarter 2024 operating earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate of $1.13 by 7.9%. The bottom line improved 38.6% from the year-ago quarter's 88 cents. The year-over-year improvement in earnings was due to increased revenues from the implementation of new rates in the Regulated Businesses from capital and acquisition investments.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The company reported 2024 EPS of $5.39 compared with $4.90 in 2023.
Total Revenues of AWK
Total quarterly revenues of $1.2 billion surpassed the Zacks Consensus Estimate of $1.08 billion by 11.4%. The top line also increased 16.4% from the year-ago figure of $1.03 billion.
2024 revenues were $4.68 billion compared with $4.23 billion in 2023. The year-over-year rise was primarily due to authorized revenue increases resulting from completed general rate cases and infrastructure proceedings to recover incremental capital and acquisition investments.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
Regulated businesses’ net revenues in 2024 were $4.3 billion, up 9.6% year over year.
Other’s net revenues in 2024 were $380 million compared with $310 million in 2023.
Highlights of AWK’s Q4 Release
Total operating expenses for the fourth quarter were $801 million, up 9.3% from the year-ago quarter’s $733 million, due to an increase in operating and maintenance expenses.
The operating income was $400 million, up 33.8% from the year-ago figure of $299 million. The metric was higher than our model’s prediction of $338.2 million.
AWK continues to expand operations through acquisitions and organic means. In 2024, the company added 90,000 customers to its existing operation, out of which 69,500 customers were added through 13 closed acquisitions.
AWK’s 17 pending acquisitions (as of Jan. 1, 2025), when completed, will add another 24,200 customers.
New rates effective will increase 2025 revenues by $129 million and as of Jan. 1, 2025, the pending rate cases, if approved without any changes, can increase revenues by another $178 million.
Net income in the fourth quarter was $239 million compared with $171 million in the year-ago quarter.
Financial Highlights of AWK
Cash and cash equivalents amounted to $96 million as of Dec. 31, 2024, compared with $330 million as of Dec. 31, 2023. Total liquidity (including cash and credit) was $1.88 billion as of Dec. 31, which is enough to meet near-term obligations.
Total long-term debt was $12.52 billion as of Dec. 31, 2024, up 6.9% from $11.7 billion as of Dec. 31, 2023.
In 2024, cash flow from operating activities was $2.04 billion compared with $1.87 billion in the year-ago period.
AWK’s Long-Term Guidance
American Water reiterated its 2025 EPS guidance of $5.65-$5.75. The Zacks Consensus Estimate of $5.70 per share is on par with the midpoint of the company’s guided range. AWK reiterated long-term earnings and dividend growth in the range of 7-9%. The company plans to invest nearly $3.3 billion in 2025.
AWK reiterated its long-term capital expenditure plan to strengthen and expand its existing infrastructure. For 2025-2029 capital expenditure is expected in the range of $17-$18 billion and for 2025-3034 in the band of $40-$42 billion.
Essential Utilities Inc. (WTRG - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 26. The Zacks Consensus Estimate for Essential Utilities’ fourth-quarter EPS is pegged at 66 cents, implying an increase of 32% from the prior-year figure.
California Water Service Group (CWT - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 27. The Zacks Consensus Estimate for California Water Service’s EPS is pinned at 15 cents, indicating a decline of 71.2% from the year-ago quarter.
Global Water Resources Inc. (GWRS - Free Report) is scheduled to report fourth-quarter 2024 earnings on March 6. The Zacks Consensus Estimate for Global Water Resources’ EPS is pegged at 6 cents, indicating a decline of 14.3% from the year-ago quarter.
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American Water Q4 Earnings & Revenues Beat Estimates, Customers Added
American Water Works Company (AWK - Free Report) posted fourth-quarter 2024 operating earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate of $1.13 by 7.9%. The bottom line improved 38.6% from the year-ago quarter's 88 cents. The year-over-year improvement in earnings was due to increased revenues from the implementation of new rates in the Regulated Businesses from capital and acquisition investments.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The company reported 2024 EPS of $5.39 compared with $4.90 in 2023.
Total Revenues of AWK
Total quarterly revenues of $1.2 billion surpassed the Zacks Consensus Estimate of $1.08 billion by 11.4%. The top line also increased 16.4% from the year-ago figure of $1.03 billion.
2024 revenues were $4.68 billion compared with $4.23 billion in 2023. The year-over-year rise was primarily due to authorized revenue increases resulting from completed general rate cases and infrastructure proceedings to recover incremental capital and acquisition investments.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. Quote
AWK’s Segmental Details
Regulated businesses’ net revenues in 2024 were $4.3 billion, up 9.6% year over year.
Other’s net revenues in 2024 were $380 million compared with $310 million in 2023.
Highlights of AWK’s Q4 Release
Total operating expenses for the fourth quarter were $801 million, up 9.3% from the year-ago quarter’s $733 million, due to an increase in operating and maintenance expenses.
The operating income was $400 million, up 33.8% from the year-ago figure of $299 million. The metric was higher than our model’s prediction of $338.2 million.
AWK continues to expand operations through acquisitions and organic means. In 2024, the company added 90,000 customers to its existing operation, out of which 69,500 customers were added through 13 closed acquisitions.
AWK’s 17 pending acquisitions (as of Jan. 1, 2025), when completed, will add another 24,200 customers.
New rates effective will increase 2025 revenues by $129 million and as of Jan. 1, 2025, the pending rate cases, if approved without any changes, can increase revenues by another $178 million.
Net income in the fourth quarter was $239 million compared with $171 million in the year-ago quarter.
Financial Highlights of AWK
Cash and cash equivalents amounted to $96 million as of Dec. 31, 2024, compared with $330 million as of Dec. 31, 2023. Total liquidity (including cash and credit) was $1.88 billion as of Dec. 31, which is enough to meet near-term obligations.
Total long-term debt was $12.52 billion as of Dec. 31, 2024, up 6.9% from $11.7 billion as of Dec. 31, 2023.
In 2024, cash flow from operating activities was $2.04 billion compared with $1.87 billion in the year-ago period.
AWK’s Long-Term Guidance
American Water reiterated its 2025 EPS guidance of $5.65-$5.75. The Zacks Consensus Estimate of $5.70 per share is on par with the midpoint of the company’s guided range. AWK reiterated long-term earnings and dividend growth in the range of 7-9%. The company plans to invest nearly $3.3 billion in 2025.
AWK reiterated its long-term capital expenditure plan to strengthen and expand its existing infrastructure. For 2025-2029 capital expenditure is expected in the range of $17-$18 billion and for 2025-3034 in the band of $40-$42 billion.
Zacks Rank of AWK
American Water currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Essential Utilities Inc. (WTRG - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 26. The Zacks Consensus Estimate for Essential Utilities’ fourth-quarter EPS is pegged at 66 cents, implying an increase of 32% from the prior-year figure.
California Water Service Group (CWT - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 27. The Zacks Consensus Estimate for California Water Service’s EPS is pinned at 15 cents, indicating a decline of 71.2% from the year-ago quarter.
Global Water Resources Inc. (GWRS - Free Report) is scheduled to report fourth-quarter 2024 earnings on March 6. The Zacks Consensus Estimate for Global Water Resources’ EPS is pegged at 6 cents, indicating a decline of 14.3% from the year-ago quarter.