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American Water Works to Release Q2 Earnings: What's in the Cards?

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Key Takeaways

  • AWK's Q2 earnings likely gained from new rates, cost control and recent state-level acquisitions.
  • The consensus estimate for Q2 EPS is pinned at $1.49, up 4.9% YoY, on revenues of $1.15B, up 0.47%.
  • AWK has an Earnings ESP of +0.67% and a Zacks Rank #2, indicating a likely earnings beat.

American Water Works (AWK - Free Report) is scheduled to release second-quarter 2025 results on July 30, after market close. The company delivered an earnings surprise of 0.96% in the last reported quarter.
 
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Major Factors That Might Have Impacted AWK's Q2 Performance

American Water Works generates nearly 100% of its net income from regulated operations. The new rates effective during the second quarter and the previous quarters are expected to have contributed positively to the quarterly performance.

American Water Works’ earnings are expected to have benefited from infrastructure improvements due to capital investment and efficient cost management strategies.

AWK completed three acquisitions in three states as of April 30, 2025. Synergies from the completed acquisition are likely to have had a positive impact on second-quarter earnings.

Q2 Expectations for AWK

The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, implying a year-over-year increase of 4.9%.

The consensus estimate for revenues is pinned at $1.15 billion, indicating an increase of 0.47% from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model predicts 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. That is exactly the case here, as you will see below.

AWK’s Earnings ESP: The company has an Earnings ESP of +0.67% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AWK’s Zacks Rank: Currently, American Water Works carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may consider the following players from the same sector, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Essential Utilities (WTRG - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on July 31. It has an Earnings ESP of +6.90% and a Zacks Rank #2 at present.

WTRG’s long-term (three to five years) earnings growth rate is 5.18%. The Zacks Consensus Estimate for second-quarter earnings per share is pinned at 29 cents, which implies a year-over-year increase of 3.57%.

IDACORP (IDA - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on July 31. It has an Earnings ESP of +4.55% and a Zacks Rank #2 at present.

IDA’s long-term earnings growth rate is 5.56%. The Zacks Consensus Estimate for second-quarter earnings is pinned at 53 cents per share, which implies a year-over-year increase of 10.4%.

ONE Gas Inc. (OGS - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug. 5. It has an Earnings ESP of +3.22% and a Zacks Rank #2 at present.

OGS’ long-term earnings growth rate is 5.56%. The Zacks Consensus Estimate for second-quarter earnings is pinned at 53 cents per share, which implies a year-over-year increase of 10.4%.

 

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