Market Overview

Earnings Outlook for American States Water

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American States Water (NYSE: AWR) announces its next round of earnings this Monday, November 02. Here is Benzinga's look at American States Water's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict American States Water will report earnings of $0.72 per share on revenue of $140.07 million. American States Water EPS in the same period a year ago totaled $0.69. Sales were $134.50 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 4.35% increase for the company. Revenue would be up 4.14% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.69 0.43 0.38 0.70
EPS Actual 0.69 0.46 0.45 0.69
Revenue Estimate 138.12 M 105.42 M 117.00 M 135.00 M
Revenue Actual 121.28 M 109.08 M 112.99 M 134.50 M

Stock Performance

Shares of American States Water were trading at $75.83 as of October 29. Over the last 52-week period, shares are down 16.65%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. American States Water is scheduled to hold the call at 14:00:00 ET and can be accessed here.

 

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Posted-In: Earnings