American Water Works Reports Increased Earnings but Misses Estimates

In a recent report, American Water Works Company, Inc. revealed a profit increase in its third quarter, earning $350 million. However, this fell short of analysts' expectations of $1.84 per share despite a revenue growth of 13.4% from last year. Guidance for full year EPS remains positive.

Date: 31-10-2024

AI Rating: 5

The report highlights key financial metrics for American Water Works Company, Inc., indicating both growth and setbacks. Specifically, the company's net income for the third quarter rose to $350 million from $323 million year-over-year, signaling a year-on-year improvement. This translates to an earnings per share (EPS) of $1.80, an increase from $1.66 in the previous year.

Despite this increase, the company's earnings did not meet analysts' expectations, who had forecasted an EPS of $1.84. This miss could lead to negative sentiment among investors, potentially putting downward pressure on stock prices.

On a positive note, revenue growth was notable, rising by 13.4% to $1.323 billion compared to $1.167 billion last year, which is a positive indicator of the company's operational performance and demand for its services.

Looking ahead, the company has provided a guidance for full year EPS in the range of $5.25 to $5.30. This forward-looking statement suggests a stable outlook for the upcoming quarters, which may help counteract some of the negative sentiment stemming from the current quarter's miss.

Stocks: AWK