American Water Works (NYSE: AWK ) reported earnings on Feb. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American Water Works missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank. GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
American Water Works logged revenue of $680.9 million. The nine analysts polled by S&P Capital IQ predicted sales of $699.6 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $623.7 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 $0.30. The nine earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. Non-GAAP EPS of $0.30 for Q4 were 14% lower than the prior-year quarter's $0.35 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.) GAAP EPS of $0.31 for Q4 were 35% higher than the prior-year quarter's $0.23 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.5%, 560 basis points worse than the prior-year quarter. Operating margin was 24.5%, 400 basis points worse than the prior-year quarter. Net margin was 8.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $658.9 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $2.98 billion. The average EPS estimate is $2.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 254 members out of 267 rating the stock outperform, and 13 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give American Water Works a green thumbs-up, and one 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 $41.81.
Looking for alternatives to American Water Works? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add American Water Works to My Watchlist.