American Water Works AWK is preparing to release its quarterly earnings on Wednesday, 2025-04-30. Here’s a brief overview of what investors should keep in mind before the announcement.
Analysts expect American Water Works to report an earnings per share (EPS) of $1.11.
American Water Works bulls will hope to hear the company announce they’ve not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
During the last quarter, the company reported an EPS beat by $0.10, leading to a 0.63% increase in the share price on the subsequent day.
Here’s a look at American Water Works’s past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.12 | 1.84 | 1.52 | 0.98 |
| EPS Actual | 1.22 | 1.80 | 1.42 | 0.95 |
| Price Change % | 1.0% | 2.0% | 2.0% | 1.0% |
American Water Works Share Price Analysis
Shares of American Water Works were trading at $144.27 as of April 28. Over the last 52-week period, shares are up 15.59%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts’ Perspectives on American Water Works
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding American Water Works.
The consensus rating for American Water Works is Neutral, based on 5 analyst ratings. With an average one-year price target of $145.8, there’s a potential 1.06% upside.
Comparing Ratings Among Industry Peers
The below comparison of the analyst ratings and average 1-year price targets of Essential Utilities, American States Water and California Water Servs Gr, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Essential Utilities, with an average 1-year price target of $43.5, suggesting a potential 69.85% downside.
- Analysts currently favor an Underperform trajectory for American States Water, with an average 1-year price target of $71.0, suggesting a potential 50.79% downside.
- Analysts currently favor an Buy trajectory for California Water Servs Gr, with an average 1-year price target of $54.0, suggesting a potential 62.57% downside.
Comprehensive Peer Analysis Summary
In the peer analysis summary, key metrics for Essential Utilities, American States Water and California Water Servs Gr are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| American Water Works Co | Neutral | 16.38% | $682M | 2.31% |
| Essential Utilities | Neutral | 26.07% | $346.40M | 2.98% |
| American States Water | Underperform | 14.31% | $105.67M | 3.15% |
| California Water Servs Gr | Buy | 3.58% | $131.49M | 1.20% |
Key Takeaway:
American Water Works is positioned in the middle among its peers for Consensus rating. It ranks at the top for Revenue Growth. In terms of Gross Profit, it is positioned in the middle. For Return on Equity, it is placed at the bottom among its peers.
About American Water Works
American Water Works is the largest investor-owned US water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company’s nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.
American Water Works: A Financial Overview
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: American Water Works’s remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 16.38%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.
Net Margin: American Water Works’s net margin is impressive, surpassing industry averages. With a net margin of 19.9%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): American Water Works’s ROE surpasses industry standards, highlighting the company’s exceptional financial performance. With an impressive 2.31% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): American Water Works’s ROA excels beyond industry benchmarks, reaching 0.74%. This signifies efficient management of assets and strong financial health.
Debt Management: With a high debt-to-equity ratio of 1.37, American Water Works faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for American Water Works visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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