Brokerages Expect American Water (AWK) to Announce $0.81 EPS

Brokerages predict that American Water (NYSE:AWK) will report $0.81 earnings per share (EPS) for the current quarter, according to Zacks. Two analysts have provided estimates for American Water’s earnings, with estimates ranging from $0.79 to $0.86. American Water reported earnings of $0.73 per share during the same quarter last year, which would suggest a positive year-over-year growth rate of 11%. The business is expected to report its next quarterly earnings report on Wednesday, August 1st.

According to Zacks, analysts expect that American Water will report full year earnings of $3.27 per share for the current fiscal year, with EPS estimates ranging from $3.25 to $3.30. For the next fiscal year, analysts anticipate that the business will post earnings of $3.53 per share, with EPS estimates ranging from $3.51 to $3.58. Zacks’ EPS averages are a mean average based on a survey of sell-side analysts that cover American Water.

American Water (NYSE:AWK) last issued its quarterly earnings results on Wednesday, May 2nd. The utilities provider reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. American Water had a net margin of 13.06% and a return on equity of 10.20%. The firm had revenue of $761.00 million during the quarter, compared to the consensus estimate of $726.74 million. During the same period in the prior year, the firm earned $0.52 EPS. The business’s revenue was up .7% on a year-over-year basis.

AWK has been the subject of a number of recent research reports. Guggenheim restated a “hold” rating and issued a $82.00 price objective on shares of American Water in a research note on Friday, February 23rd. HSBC upgraded shares of American Water from a “hold” rating to a “buy” rating and increased their price objective for the company from $74.63 to $80.15 in a research note on Friday, March 23rd. UBS increased their price objective on shares of American Water from $89.00 to $91.00 and gave the company a “buy” rating in a research note on Friday, March 23rd. Wells Fargo & Co upgraded shares of American Water from a “market perform” rating to an “outperform” rating and increased their price objective for the company from $80.63 to $88.00 in a research note on Monday, February 26th. Finally, Bank of America set a $84.00 price objective on shares of American Water and gave the company a “hold” rating in a research note on Thursday, February 22nd. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $89.52.

Shares of American Water opened at $80.51 on Friday, Marketbeat.com reports. American Water has a 52-week low of $76.04 and a 52-week high of $92.37. The firm has a market capitalization of $14.34 billion, a PE ratio of 26.57, a price-to-earnings-growth ratio of 3.19 and a beta of 0.15. The company has a quick ratio of 0.27, a current ratio of 0.29 and a debt-to-equity ratio of 1.17.

The company also recently announced a quarterly dividend, which will be paid on Friday, June 1st. Investors of record on Friday, May 11th will be given a dividend of $0.455 per share. The ex-dividend date of this dividend is Thursday, May 10th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.26%. This is a boost from American Water’s previous quarterly dividend of $0.42. American Water’s dividend payout ratio (DPR) is 60.07%.

In related news, EVP Michael A. Sgro sold 16,026 shares of the stock in a transaction dated Wednesday, May 16th. The shares were sold at an average price of $80.54, for a total transaction of $1,290,734.04. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.35% of the company’s stock.

Several institutional investors have recently made changes to their positions in the stock. Summit Trail Advisors LLC increased its position in shares of American Water by 8,281.2% during the 1st quarter. Summit Trail Advisors LLC now owns 188,576 shares of the utilities provider’s stock worth $189,000 after purchasing an additional 186,326 shares in the last quarter. CIBC World Markets Inc. increased its position in shares of American Water by 33.2% during the 1st quarter. CIBC World Markets Inc. now owns 29,992 shares of the utilities provider’s stock worth $2,463,000 after purchasing an additional 7,469 shares in the last quarter. Xact Kapitalforvaltning AB increased its position in shares of American Water by 3.9% during the 1st quarter. Xact Kapitalforvaltning AB now owns 34,964 shares of the utilities provider’s stock worth $2,872,000 after purchasing an additional 1,321 shares in the last quarter. Royal Bank of Canada increased its position in shares of American Water by 1.3% during the 1st quarter. Royal Bank of Canada now owns 1,999,120 shares of the utilities provider’s stock worth $164,187,000 after purchasing an additional 25,434 shares in the last quarter. Finally, McKinley Carter Wealth Services Inc. acquired a new stake in shares of American Water during the 1st quarter worth about $148,000. Institutional investors and hedge funds own 84.20% of the company’s stock.

About American Water

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States and Canada. It offers water and wastewater services to approximately 1,600 communities in 16 states. The company operates approximately 72 surface water treatment plants; 527 groundwater treatment plants; 8 combined treatment plants; 127 wastewater treatment plants; 50,382 miles of transmission, distribution, and collection mains and pipes; 1,103 groundwater wells; 1,428 water and wastewater pumping stations; 1,313 treated water storage facilities; and 80 dams.

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