American Water Works
The 10-second takeaway
For the quarter ended March 31 (Q1), American Water Works missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins were steady, net margins expanded.
American Water Works booked revenue of $636.1 million. The nine analysts polled by S&P Capital IQ foresaw a top line of $650.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.32. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.32 for Q1 were 33% higher than the prior-year quarter's $0.24 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 50.9%, 100 basis points better than the prior-year quarter. Operating margin was 25.8%, much about the same as the prior-year quarter. Net margin was 9.1%, 230 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $766.4 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $3.00 billion. The average EPS estimate is $2.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 257 members out of 271 rating the stock outperform, and 14 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give American Water Works a green thumbs-up, and three 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 $42.62.
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