AWK Earnings Prediction
The chart below shows how AWK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AWK sees a -0.71% change in stock price 10 days leading up to the earnings, and a +0.74% change 10 days following the report. On the earnings day itself, the stock moves by +0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
AWK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.32B
13.37%
15.14%
Gross Margin
--
--
--
Operating Margin
41.04%
0.20%
5.02%
Net Margin
26.46%
-4.41%
9.75%
EPS
1.79
7.83%
26.06%
No Data Available
AWK Earnings Analysis
American Water Works Company, Inc Corporation (AWK.N) Earnings Conference Call
Positive
Earnings Per Share Increase: 1. Earnings Growth: American Water reported earnings of $1.80 per share for Q3 2024, an increase from $1.66 per share in Q3 2023, and year-to-date earnings reached $4.17 per share, up from $4.03 in the same period last year.
Acquisition of Wastewater Assets: 2. Acquisition Expansion: The company successfully closed a $230 million acquisition of the Wastewater System Assets of Butler Area Sewer Authority, adding 15,000 customers to its service base.
EPS Growth Forecast: 3. Strong EPS Guidance: American Water initiated its 2025 earnings guidance at $5.65 to $5.75 per share, indicating an expected growth of 8% compared to the weather-normalized 2024 EPS guidance.
Capital Investment Strategy: 4. Capital Investment Plan: The company plans to invest $3.3 billion in 2025 and $17 billion to $18 billion from 2025 to 2029, reflecting a $1 billion increase over the previous five-year plan to meet compliance and infrastructure needs.
Customer Affordability Expansion: 5. Customer Affordability Initiatives: American Water expanded its H2O Help to Others discount program, increasing eligibility to customers with incomes up to 200% of the federal poverty level, benefiting an additional 55,000 customers in Pennsylvania.
Negative
Rising Operating Expenses: 1. Increased Operating Costs: Operating and maintenance costs rose by $0.19 per share, primarily due to employee-related expenses and other growth-related increases.
Increased Depreciation and Costs: 2. Higher Depreciation and Financing Costs: Depreciation expenses increased by $0.21 per share, while long-term financing costs rose by $0.28 per share, both attributed to ongoing capital investments.
Cybersecurity Risk Concerns: 3. Cybersecurity Incident: A cybersecurity incident was reported, although it did not impact water or wastewater facilities; the potential for future risks remains a concern.
Tax Increase Impact: 4. General Tax Increases: General taxes, including property and gross receipts taxes, increased by $0.06 per share, driven by higher capital investments and revenue in New Jersey.
Increased Equity Issuance: 5. Equity Financing Increase: The updated financing plan anticipates $2.5 billion in external equity issuances, significantly higher than the previous plan, indicating a need for more capital to support growth.
AWK FAQs
How does AWK typically perform around its earnings report dates?
Is American Water Works Company, Inc. (AWK) Q3 2024 Earnings Call Summary positive or negative?
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AWK Earning Call Sentiment
American Water Works Company, Inc. (AWK) Q3 2024 Earnings Call Transcript
1.0x
00:00
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AWK.N
1.1%Positive
The earnings call summary presents strong financial performance with EPS growth, increased revenue, and raised guidance. The company has a solid acquisition pipeline and plans for significant capital investments. The Q&A section, while highlighting some concerns like interest rate risk and cash flow impacts, doesn't significantly alter the positive outlook. The raised guidance, substantial capital investment, and acquisition strategy are likely to positively influence the stock price, despite some increased costs and interest rate risks.
