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What's in Store for American Water Works' (AWK) Q1 Earnings?

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·3 min read
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American Water Works Company AWK is set to release first-quarter 2021 results on May 3. In the last reported quarter, the company’s earnings were on par with estimates.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Since American Water has a predominantly residential customer base, demand from residential customers for water and wastewater services is likely to have had a positive impact on first-quarter earnings. Ongoing increase in customer volume due to acquisitions, and organic means is likely to have increased the demand for water and wastewater services as well as boosted earnings.

American Water’s first-quarter earnings are also expected to have benefited from efficient cost management and the implementation of new rates in its service territories.

Expectations

The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 73 cents per share and $878.1 million, indicating year-over-year growth of 8.9% and 4%, respectively, from the year-ago reported figures.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for American Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.

American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote

Earnings ESP: The company’s Earnings ESP is +0.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Water currently has a Zacks Rank #3.

Other Stocks to Consider

Here are a few other companies worth considering from the same sector that too have the right combination of elements to beat on earnings in the upcoming releases.

MYR Group Inc. MYRG is set to release first-quarter 2021 numbers on Apr 28. It presently has an Earnings ESP of +10.40% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

National Fuel Gas Company NFG is set to release fiscal second-quarter 2021 numbers on May 7. It currently has an Earnings ESP of +4.13% and a Zacks Rank #2.

Duke Energy DUK is set to release first-quarter 2021 numbers on May 10. It has an Earnings ESP of +0.16% and carries a Zacks Rank #3, at present.

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Duke Energy Corporation (DUK) : Free Stock Analysis Report

National Fuel Gas Company (NFG) : Free Stock Analysis Report

MYR Group, Inc. (MYRG) : Free Stock Analysis Report

American Water Works Company, Inc. (AWK) : Free Stock Analysis Report

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Zacks Investment Research