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American States Water to Post Q1 Earnings: What's in Store?

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American States Water Company (AWR - Free Report) is set to release first-quarter 2020 results on May 4, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 9.76%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Note

Already-approved water rate cases for 2019-2021 time period and electric rate cases for 2018-2022 are like to have had a positive impact on the company’s first-quarter earnings. The company continues to serve its customers with excellent water, electric and wastewater services despite the COVID-19 crisis. Also, the coronavirus pandemic is likely to have had a lesser impact on the company’s performance in the to-be-reported quarter.   

ASUS, a subsidiary of AWR, provides operations, maintenance and construction management services for water distribution as well as wastewater collection and treatment facilities to 11 military bases. This ensures stable earnings for the company. The same is anticipated to have positively impacted its first-quarter earnings. 

American States Water Company Price and EPS Surprise

 

American States Water Company Price and EPS Surprise

American States Water Company price-eps-surprise | American States Water Company Quote

 

Q1 Expectations

The Zacks Consensus Estimate for first-quarter 2020 sales is pegged at $106 million, which indicates an increase of 4.20% from the year-ago quarter’s figure. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 40 cents per share, which indicates an increase of 14.29% from the year-ago quarter’s figure.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for American States Water this time around. A stock needs to have 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.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American States Water currently has a Zacks Rank #2.You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Stocks to Consider

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

Spire Inc. (SR - Free Report) is set to release first-quarter 2020 numbers on May 8. It has an Earnings ESP of +0.17% and carries a Zacks Rank #3.

Algonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to release first-quarter results on May 7. It has an Earnings ESP of +1.42% and a Zacks Rank #2.

Consolidated Edison Inc (ED - Free Report) is scheduled to release first-quarter results on May 7. It has an Earnings ESP of +0.69% and a Zacks Rank #3

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