American Water Works Beats Analyst Estimates on EPS
American Water Works (NYS: AWK) reported earnings on Feb. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American Water Works whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Margins grew across the board.
American Water Works reported revenue of $639.8 million. The eight analysts polled by S&P Capital IQ expected a top line of $722.4 million on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $664.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.36 for Q4 were 57% higher than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.4%, 350 basis points better than the prior-year quarter. Operating margin was 27.7%, 920 basis points better than the prior-year quarter. Net margin was 10.1%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $642.5 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.95 billion. The average EPS estimate is $1.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 216 members out of 229 rating the stock outperform, and 13 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give American Water Works a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Water Works is outperform, with an average price target of $33.53.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.