Stock Monitor: Artesian Resources Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 02, 2018 /
Active-Investors.com has just released a free earnings report on American Water Works Co., Inc. (NYSE: AWK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AWK. American Water Works reported financial results on February 21, 2018 for the fourth quarter and full year ended December 31, 2017. The Company surpassed analysts' consensus estimates for earnings but missed their estimates for revenue in the fourth quarter of 2017 (Q4 FY17). Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Artesian Resources Corporation (NASDAQ: ARTNA), which also belongs to the Utilities sector as the Company American Water Works. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, American Water Works most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
American Water Works' total operating revenues reached $821 million for Q4 FY17, up 2.37% from $802 million in Q4 FY16, mainly led by continued growth in the Regulated businesses. The reported revenue number missed analysts' consensus estimates of $835 million.
During Q4 FY17, American Water Works' total operating expenses were $542 million compared to $554 million in Q4 FY16, reflecting a decrease of 2.17%. The Company's operation and maintenance expenses decreased 1.34% to $368 million and depreciation and amortization (D&A) expenses fell 5% to $114 million in the reported quarter. American Water Works' operating income advanced 12.5% to $279 million in Q4 FY17 from $248 million in Q4 FY16.
Net loss attributable to common stockholders of American Water Works was $1 million for Q4 FY17 compared to a net income attributable to common stockholders of $101 million in Q4 FY16. The Company reported a diluted loss per share of $0.01 in the reported quarter, after diluted earnings per share of $0.57 in the year earlier comparable quarter. The reported quarter results included the estimated impact of $0.7 per share from the enactment of the Tax Cuts and Jobs Act (TCJA). The Company's diluted EPS, after adjusting for non-recurring items, increased 21.05% to $0.69 in Q4 FY17 from $0.57 in Q4 FY16. American Water Works' adjusted EPS was higher than analysts' consensus estimates of $0.66 per share.
For the year ending December 31, 2017, American Water Works' total revenues were $3.36 billion, up 1.67% from $3.3 billion in FY16. The Company's operating income advanced 15.19% to $1.24 billion y-o-y in FY17. Net income attributable to common stockholders was $426 million in FY17, 8.97% lower than $468 million in FY16. Diluted EPS also fell 9.16% to $2.38 in the reported year from $2.62 in the previous year. The reported earnings results included impact of Freedom Industries settlement activities, early extinguishment of debt at the parent Company, and TCJA. Diluted EPS for full year 2017, excluding special items was $3.03, up 6.69% from $2.84 in FY16. In fiscal 2017, the Company achieved the best ever O&M efficiency ratio (regulated businesses) of 33.8%. A lower O&M efficiency ratio allows the Company to make investments in needed capital improvements without significantly impacting customer bills.
American Water Works' Segment Details
During Q4 2017, the Regulated businesses' net income was $113 million, an increase of 15.31% y-o-y, driven mainly by infrastructure investment, acquisitions, and organic growth. This segment's adjusted net income jumped 21.43% to $119 million in the reported quarter from $98 million in the year-ago same quarter.
For Q4 FY17, Market-Based Businesses' net income was $9 million, 30.77% lower than previous-year's same quarter. The market-based Businesses' adjusted net income advanced 7.69% to $14 million in Q4 FY17 from $13 million in Q4 FY16, driven by growth in the Homeowner Services Group through customer growth and price increases for certain customers.
American Water Works had cash and cash equivalents of $55 million as on December 31, 2017, a decrease of 26.67% from $75 million as on December 31, 2016. The Company's total long-term debt increased 12.83% to $6.5 billion as on December 31, 2017, from $5.76 billion as on December 31, 2016.
On December 08, 2017, American Water Works' Board of Directors declared a quarterly cash dividend of $0.415 per share payable on March 01, 2018, to stockholders of record as of February 07, 2018.
American Water Works expects its 2018 earnings to be in the range of $3.22 to $3.32 per diluted share, and long-term EPS compound annual growth rate (CAGR) to be in the range of 7% to 10%. Besides, the Company expects its 2018 dividend growth rate to be at top end of long-term EPS CAGR range. American Water Works intends to invest between $8.0 billion to $8.6 billion over the next five years.
Stock Performance Snapshot
March 29, 2018 - At Thursday's closing bell, American Water Works' stock rose 1.16%, ending the trading session at $82.13.
Volume traded for the day: 1.04 million shares.
Stock performance in the last month – up 3.49%; previous six-month period – up 1.40%; and past twelve-month period – up 6.43%
After last Thursday's close, American Water Works' market cap was at $14.62 billion.
Price to Earnings (P/E) ratio was at 26.65.
The stock has a dividend yield of 2.02%.
The stock is part of the Utilities sector, categorized under the Water Utilities industry. This sector was up 0.6% at the end of the session.
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