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American States Water (AWR) Misses Earnings Estimates in Q1

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American States Water Company AWR delivered first-quarter 2018 earnings of 29 cents per share, missing the Zacks Consensus Estimate of 34 cents by 14.7%.

Further, the figure declined 14.7% year over year. The bottom line declined due to lower net earnings stemming from the California Public Utilities Commission’s (CPUC) issuance of the cost of capital decision in March 2018. The earnings were also hurt by poor market condition during the quarter.

Total Revenues

The company’s operating revenues were $94.7 million, missing the Zacks Consensus Estimate of $101 million by 6.2%.  Revenues dipped 4.1% year over year. The downside was primarily caused by lower revenues generated by all three segments.

American States Water Company Price, Consensus and EPS Surprise

 

American States Water Company Price, Consensus and EPS Surprise | American States Water Company Quote

Operational Update

In the quarter under review, American States Water’s total operating expenses were $76 million, up 2.4% year over year. Expenses increased in Contracted Services segment, primarily due to the inception of Eglin operations in June 2017 and initiation of the transition period at Fort Riley in September 2017.

Interest expenses were $5.9 million, up 0.3% year over year. However, interest income totaled $0.53 million, up 107% year over year.

Segment Details

Earnings in the Water segment were 20 cents, down by a nickel on a year-over-year basis.

Earnings in the Electric segment were 4 cents, flat year over year.

Earnings in the Contracted Services segment were 5 cents, flat year over year.

Financial Update

As of Mar 31, 2018, American States Water’s cash and cash equivalents were $6 million compared with $0.21 million as of Dec 31, 2017.

The company’s long-term debts were $281million compared with $321 million as of Dec 31, 2017.

Net cash provided to operating activities was $35.7 million, up from $28 million in the year-ago period.

Zacks Rank

American States Water currently carries a Zacks Rank #4 (Sell).

Other Water Supply Utility Release

American Water Works Company AWK posted first-quarter 2018 earnings per share of 59 cents, which beat the Zacks Consensus Estimate of 55 cents by 7.3%. American Water Works currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Consolidated Water Company Ltd. CWCO is likely to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for earnings is pegged at 18 cents.


Global Water Resource Inc. GWRS is anticipated to release 2018 first-quarter earnings on May 9. The Zacks Consensus Estimate for earnings is pegged at 1 cent.

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