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American Water (AWK) to Post Q4 Earnings: What's in Store?

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American Water Works Company (AWK - Free Report) is set to release fourth-quarter 2019 results on Feb 18, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 3.1%.

Factors to Note

American Water has been enjoying the benefits of both organic and inorganic initiatives. From the start of 2019 till Dec 2, the company closed 20 acquisitions that added 53,100 customers to its customer base, which will positively reflect on fourth-quarter results.

During the quarter, the company provided water and wastewater services to 16 military bases under long-term contracts, which are expected to have had a positive impact on earnings. In addition, new water rates that came into effect primarily during the first nine months of 2019 are anticipated to have positively impacted on its fourth-quarter earnings.  

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 73 cents per share, which indicates year-over-year growth of 5.8%.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for American Water this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote

Earnings ESP: The company’s Earnings ESP is -0.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Water currently has a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Ameren Corporation (AEE - Free Report) is scheduled to release fourth-quarter 2019 results on Feb 26. It has an Earnings ESP of +3.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenterPoint Energy Inc. (CNP - Free Report) is set to release fourth-quarter 2019 numbers on Feb 27. It has an Earnings ESP of +0.93% and carries a Zacks Rank #3.

The AES Corporation (AES - Free Report) is set to release fourth-quarter 2019 numbers on Feb 28. It has an Earnings ESP of +0.52% and carries a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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