American Water Works
The 10-second takeaway
For the quarter ended March 31 (Q1), American Water Works missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted.
Gross margins expanded, operating margins increased, and net margins shrank.
American Water Works tallied revenue of $618.6 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $630.8 million on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $601.8 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 $0.29. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.24 for Q1 were 11% lower than the prior-year quarter's $0.27 per share. (The prior-year quarter included $0.04 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 49.9%, 230 basis points better than the prior-year quarter. Operating margin was 25.8%, 190 basis points better than the prior-year quarter. Net margin was 6.8%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $714.1 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.89 billion. The average EPS estimate is $1.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 216 members rating the stock outperform and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 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 $35.27.
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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 of Motley 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.