American Water Works Earnings: Everything You Must Know Now

American Water Works Company, Inc. (NYSE:AWK) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

American Water Works Company, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.64% to $0.57 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Decreased 2.86% to $724.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Water Works Company, Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company missed the mean analyst estimate of $0.61. It missed the average revenue estimate of $754.73 million.

Quoting Management: “American Water’s year-over-year quarterly results reflect a tale of two springs, with above-average rainfall and cooler temperatures in the second quarter of 2013 in sharp contrast to the same quarter in 2012, when much of the country was experiencing record-breaking drought and heat,” said Jeff Sterba, president and CEO of American Water. “However, our geographical diversity mitigated the full effect of this contrast and, when combined with our strong first quarter results, we are reaffirming our annual earnings guidance of $2.15 to $2.25 per share.”

Key Stats (on next page)…

Revenue increased 13.86% from $636.14 million in the previous quarter. EPS increased 78.13% from $0.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.88 to a profit $0.86. For the current year, the average estimate has moved down from a profit of $2.21 to a profit of $2.20 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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