雅虎香港財經 American Water (AWK) Q1 Earnings Lag, Revenues Beat Estimates
American Water Works Company AWK posted first-quarter 2024 operating earnings per share (EPS) of 95 cents, which lagged the Zacks Consensus Estimate of 99 cents by 4.1%. However, the bottom line improved 4.4% from the year-ago quarter's earnings of 91 cents.
The year-over-year improvement in earnings was due to favorable impacts of the implementation of new rates in Regulated businesses, offset somewhat by increased production and employee-related costs, and higher financing costs to fund the capital investment plans.
Total Revenues
Total quarterly revenues of $1.01 billion surpassed the Zacks Consensus Estimate of $0.95 billion by 6.4%. The top line also increased 7.8% from the year-ago figure of $0.94 billion.
The year-over-year improvement in total revenues was due to authorized revenue increases from the completed general rate cases and infrastructure proceedings for the recovery of incremental capital and acquisition investments.
American Water Works Company, Inc. Price, Consensus and EPS Surprise
American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. Quote
Segmental Details
Regulated businesses’ revenues in first-quarter 2024 were $0.93 billion, up 7.9% year over year.
Other revenues in first-quarter 2024 were $83 million compared with $78 million in the previous year.
Highlights of the Release
Total operating expenses for the first quarter were $685 million, up 6.5% from the year-ago quarter’s $643 million due to an increase in operating and maintenance expenses.
The operating income was $326 million, up 10.5% from the year-ago figure of $295 million. The actual operating income was better than our model’s projection of $316.3 million.
AWK continues to expand operations through acquisitions and organic means. During the first quarter, the company acquired Granite City’s wastewater treatment plant, which added 26,000 equivalent customer connections.
AWK’s 26 pending acquisitions (as of Mar 31), when completed, will add another 66,800 customers.
In first-quarter 2024, the company has been authorized annualized revenues of $43 million from rate increases. Further, a total $55 million of additional annualized revenues from infrastructure charges have been authorized and are effective from various dates ranging from January to April 2024. Currently, the rate request pending amounts to $636 million.
Financial Highlights
Cash and cash equivalents amounted to $584 million as of Mar 31, 2024, which compares with $330 million as of Dec 31, 2023. Total liquidity (including cash and credit) as of Mar 31, 2024, was $3.25 billion, enough to meet near-term obligations.
The total long-term debt was $12.6 billion as of Mar 31, 2024, up 7.7% from $11.7 billion as of Dec 31, 2023.
During the first quarter, cash flow from operating activities was $382 million compared with $285 million a year ago.
On May 1, 2024, the company’s board of directors approved a quarterly cash dividend payment of 76.50 per share of common stock, reflecting an increase of 8.1%.
Guidance
American Water reaffirmed its 2024 EPS guidance in the range of $5.20-$5.30. The Zacks Consensus Estimate of $5.24 is a tad below $5.25, the midpoint of the company’s guided range. AWK reiterated long-term earnings and dividend growth in the range of 7-9%.
The company plans to invest nearly $3.1 billion across its footprint in 2024.
Zacks Rank
American Water currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
American States Water Co. AWR is set to report first-quarter 2024 earnings on May 7, after market close. The Zacks Consensus Estimate for American States Water’s EPS is pinned at 59 cents, suggesting growth of 9.3% from the year-ago quarter.
Essential Utilities Inc. WTRG is set to report first-quarter 2024 earnings on May 2, after market close. The Zacks Consensus Estimate for Essential Utilities’ EPS is pegged at 76 cents, implying growth of 5.6% from the prior-year figure.
Global Water Resources Inc. GWRS is scheduled to report first-quarter 2024 earnings on May 9. The Zacks Consensus Estimate for Global Water Resources’ EPS is pegged at 4 cents, suggesting growth of 33.3% from the year ago.
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