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Market Overview

American Water Works Co's Earnings Outlook

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American Water Works Co (NYSE: AWK) releases its next round of earnings this Wednesday, November 04. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on American Water Works Co management projections, analysts predict EPS of $1.38 on revenue of $1.11 billion. In the same quarter last year, American Water Works Co reported EPS of $1.33 on revenue of $1.01 billion.

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.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 3.76%. Sales would be up 9.58% on a year-over-year basis. 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 0.96 0.66 0.73 1.30
EPS Actual 0.97 0.67 0.73 1.33
Revenue Estimate 940.54 M 826.44 M 923.86 M 1.05 B
Revenue Actual 931.00 M 844.00 M 902.00 M 1.01 B

Stock Performance

Shares of American Water Works Co were trading at $154.3 as of November 02. Over the last 52-week period, shares are up 28.66%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. American Water Works Co is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings