A month has gone by since the last earnings report for American States Water (AWR). Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American States Water due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
American States Water's Q1 Earnings Miss, Improve Y/Y
American States Water reported first-quarter 2019 operating earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 2.78%. However, the bottom line improved 20.7% from 29 cents registered in the year-ago quarter.
Operating revenues amounted to $102 million, which outpaced the Zacks Consensus Estimate of $99 million by 2.76%. The top line also improved 7.4% from $94.7 million in the prior-year quarter. The upside can be primarily attributed to higher revenues in the Contracted services segment, which was up by nearly 28.8%.
In the quarter under review, American States Water’s total operating expenses were $81.5 million, up 7.2% year over year.
Interest expenses were $6.3 million, up 6.6% year over year. Also, interest income totaled $1 million, up 75.7% year over year.
At the Water segment, earnings were 21 cents, up from 20 cents in the prior-year quarter.
Earnings in the Electric segment came in at 3 cents, down from 4 cents in the year-ago quarter.
At the Contracted Services segment, earnings totaled 11 cents, which rallied 120% from the year-ago quarter’s tally.
As of Mar 31, 2019, American States Water’s cash and cash equivalents were $1.8 million compared with $7.1 million as of Dec 31, 2018.
As of Mar 31, 2019, the company’s long-term debts were down at $281 million in line with the debt as of Dec 31, 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
At this time, American States Water has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, American States Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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