American Water Works (NYSE: AWK) is expected to report Q2 earnings on Aug. 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict American Water Works' revenues will expand 5.5% and EPS will improve 6.5%.

The average estimate for revenue is $711.4 million. On the bottom line, the average EPS estimate is $0.49.

Revenue details
Last quarter, American Water Works chalked up revenue of $618.6 million. GAAP reported sales were 3.7% higher than the prior-year quarter's $596.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.29. GAAP EPS of $0.24 for Q1 were 60% higher than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 49.9%, 200 basis points better than the prior-year quarter. Operating margin was 25.8%, 170 basis points better than the prior-year quarter. Net margin was 6.8%, 240 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $2.84 billion. The average EPS estimate is $1.95.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 228 members out of 241 rating the stock outperform, and 13 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 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 $35.27.

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