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Why Is American States Water (AWR) Down 4.2% Since its Last Earnings Report?
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A month has gone by since the last earnings report for American States Water Company (AWR - Free Report) . Shares have lost about 4.2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is AWR 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 Q4 Earnings Top, Revenues Lag
American States Water Company delivered fourth-quarter 2017 earnings of 36 cents per share, surpassing the Zacks Consensus Estimate of 35 cents by 2.7%. Further, the figure improved by 20% from 30 cents in the year-ago period.
On a GAAP basis, American States Water’s reported earnings of 35 cents per share, up from 30 cents a year ago. The difference between GAAP and adjusted earnings was primarily due to the effects of the tax reform.
Total Revenues
The company’s operating revenues were $104.2 million, missing the Zacks Consensus Estimate of $109 million by 4.4%. Revenues dipped 2.4% year over year. Total revenues were down primarily due to lower revenues generated by Contracted Services segment.
Operational Update
In the quarter under review, American States Water’s total operating expenses were $82.2 million, down 2.9% year over year.
Interest expenses were $4.9 million, down 1.2% year over year. Similarly interest income were $0.59 million, three fold increase year over year.
Segment Details
Earnings at Water segment were 21 cents, up 61.5% from 13 cents year over year.
Earnings at Electric segment were 2 cents, down 50% year over year.
Earnings at Contracted Services segments were 11 cents, down 15.4% compared with year-ago period.
Earnings at AWR (parent) were 2 cents, up 100% compared with prior-year period.
Financial Update
As of Dec 31, American States Water’s cash and cash equivalents were $0.21 million compared with $0.44 million in the year-ago period.
The company’s long-term debts remained flat at $321 million, compared with amount as of Dec 31, 2016.
In 2017, net cash from operating activities was $144.6 million, up from $96.9 million in the year-ago period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted by 8.1% due to these changes.
At this time, AWR has a subpar Growth Score of D, however its Momentum is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile 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.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, AWR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is American States Water (AWR) Down 4.2% Since its Last Earnings Report?
A month has gone by since the last earnings report for American States Water Company (AWR - Free Report) . Shares have lost about 4.2% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is AWR 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 Q4 Earnings Top, Revenues Lag
American States Water Company delivered fourth-quarter 2017 earnings of 36 cents per share, surpassing the Zacks Consensus Estimate of 35 cents by 2.7%. Further, the figure improved by 20% from 30 cents in the year-ago period.
On a GAAP basis, American States Water’s reported earnings of 35 cents per share, up from 30 cents a year ago. The difference between GAAP and adjusted earnings was primarily due to the effects of the tax reform.
Total Revenues
The company’s operating revenues were $104.2 million, missing the Zacks Consensus Estimate of $109 million by 4.4%. Revenues dipped 2.4% year over year. Total revenues were down primarily due to lower revenues generated by Contracted Services segment.
Operational Update
In the quarter under review, American States Water’s total operating expenses were $82.2 million, down 2.9% year over year.
Interest expenses were $4.9 million, down 1.2% year over year. Similarly interest income were $0.59 million, three fold increase year over year.
Segment Details
Earnings at Water segment were 21 cents, up 61.5% from 13 cents year over year.
Earnings at Electric segment were 2 cents, down 50% year over year.
Earnings at Contracted Services segments were 11 cents, down 15.4% compared with year-ago period.
Earnings at AWR (parent) were 2 cents, up 100% compared with prior-year period.
Financial Update
As of Dec 31, American States Water’s cash and cash equivalents were $0.21 million compared with $0.44 million in the year-ago period.
The company’s long-term debts remained flat at $321 million, compared with amount as of Dec 31, 2016.
In 2017, net cash from operating activities was $144.6 million, up from $96.9 million in the year-ago period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted by 8.1% due to these changes.
American States Water Company Price and Consensus
American States Water Company Price and Consensus | American States Water Company Quote
VGM Scores
At this time, AWR has a subpar Growth Score of D, however its Momentum is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile 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.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, AWR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.