American Water Works (AWK), a leading utilities provider, recently released its earnings results for the quarter ending on July 27th. According to the report, the company exceeded expectations with an earnings per share (EPS) of $1.44, surpassing the consensus estimate of $1.27 by $0.17.
During the quarter, American Water Works generated $1.10 billion in revenue, outperforming analysts’ predictions of $1.01 billion. This marked a 17.1% increase in quarterly revenue compared to the same period last year when the company earned $1.20 EPS.
In terms of profitability indicators, American Water Works recorded a return on equity (ROE) of 10.31% and a net margin of 22.08%. These figures demonstrate the company’s ability to efficiently allocate resources and maximize profits.
Furthermore, American Water Works recently declared its quarterly dividend payment which was disbursed on September 1st. Shareholders who were registered as of August 8th received a dividend of $0.7075 per share. With an ex-dividend date set for August 7th, this represents an annualized dividend payout of $2.83 and a yield of 2.29%.
This dividend payout is accompanied by a dividend payout ratio (DPR) of 59.08%, indicating that American Water Works allocates roughly 59% of its earnings towards dividends.
These positive financial results and attractive dividends reflect American Water Works’ commitment to delivering value to its investors while maintaining steady growth within the utilities industry.
With increasing demand for reliable water services and infrastructure investments across various regions in North America, American Water Works continues to solidify its position as one of the industry leaders.
As we move further into October 2023, investors and stakeholders can keep a close eye on American Water Works’ performance as well as any updates regarding its future growth plans and capacity expansions.
American Water Works Company, Inc.
AWK
Strong Buy
Updated on: 06/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
American Water Works Faces Decline in FY2024 Earnings Estimates
American Water Works Company, Inc. (NYSE: AWK) has experienced a decline in their FY2024 earnings estimates, according to research analysts at Zacks Research. The analysts have lowered their forecast for the utilities provider’s earnings per share to $5.14 for the year, down from their previous estimate of $5.15.
This downward revision in earnings estimates has raised concerns among investors and market analysts. The consensus estimate for American Water Works’ full-year earnings currently stands at $4.80 per share, further exacerbating the uncertainty surrounding the company’s financial performance.
Several other equities analysts have also expressed their views on the stock in recent reports. Bank of America has reduced its price target on American Water Works from $140.00 to $139.00, while StockNews.com downgraded the stock from a “hold” rating to a “sell” rating. Guggenheim has also dropped its target price on American Water Works to $147.00, and Royal Bank of Canada reaffirmed its “outperform” rating with a price target of $169.
Overall, Bloomberg reported that American Water Works currently holds an average rating of “Hold” with a consensus target price of $153.83.
In addition to these financial assessments, American Water Works recently announced a quarterly dividend which was paid on September 1st. Shareholders who were recorded on August 8th received a dividend of $0.7075 per share. This represents an annualized dividend of $2.83 and a yield of 2.29%. The company’s dividend payout ratio (DPR) currently stands at 59.08%.
The stock opened at $123.83 on October 2nd and has shown a fluctuation between its 1-year low of $122.27 and high of $162.59 throughout this period. With a market capitalization of $24.11 billion, American Water Works has a price-to-earnings ratio of 25.85 and a beta of 0.57. The company also has a debt-to-equity ratio of 1.20, a current ratio of 1.13, and a quick ratio of 1.07.
Given the recent financial developments and market fluctuations, it is essential to consider the actions taken by institutional investors and hedge funds regarding American Water Works’ stock. ProShare Advisors LLC increased its holdings in the company by 71.6% in the first quarter, while North Star Investment Management Corp raised its position by 367.2%. Van ECK Associates Corp also reported a growth of 4.3% in their ownership of American Water Works shares during this period.
These modifications in holdings reflect the cautious approach taken by investors as they navigate through the unpredictable market conditions surrounding American Water Works.
As October continues, it will be interesting to observe how American Water Works navigates through these challenges and works towards improving their financial performance in FY2024 amid various uncertainties that have engulfed the company.
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