American Water Works Prepares for Fiscal Q4 Earnings Announcement
Analysts anticipate a profit increase for the water utility leader.
American Water Works Company, Inc. (AWK), based in Camden, New Jersey, is a prominent provider of water and wastewater services. With a market capitalization of $24.1 billion, the company serves around 3.5 million customers in 1,700 communities across 14 states. It manages municipal contracts, operates on military bases, and maintains extensive infrastructure to ensure safe, reliable water services. AWK is set to share its fiscal fourth-quarter earnings for 2024 on Thursday, February 20.
Leading up to this announcement, analysts predict AWK will report a profit of $1.13 per diluted share. This figure represents a 28.4% increase from $0.88 per share reported in the same quarter last year. Notably, the company has struggled recently, meeting or exceeding consensus estimates only once in the past four quarters.
For the full fiscal year, projections indicate that AWK will report earnings per share (EPS) of $5.29, an uptick of 8% from $4.90 in fiscal 2023. Forward-looking estimates suggest an EPS rise to $5.70 in fiscal 2025, reflecting a growth rate of 7.8% year over year.
In a broader market comparison, AWK shares have lagged behind the S&P 500, which saw gains of 24.6% over the past year. AWK’s stock has declined by 3.1% during the same period, also underperforming the Utilities Select Sector SPDR Fund’s (XLU) 25.7% increase.
On October 30, after reporting its Q3 results, AWK shares experienced slight declines. The company reported revenue of $1.3 billion, which surpassed Wall Street’s expectations of $1.2 billion. However, its EPS of $1.80 fell short of the analyst forecast of $1.84. For the entire fiscal year, AWK projects an EPS in the range of $5.25 to $5.30.
Overall, the consensus opinion among analysts regarding AWK stock is moderately bullish, with a “Moderate Buy” rating. Out of 15 analysts covering the company, four recommend a “Strong Buy,” one suggests a “Moderate Buy,” eight advise a “Hold,” and two indicate a “Moderate Sell.” The average price target set by analysts for AWK is $142.75, suggesting a potential upside of 13% from its current price.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
