Latest news with #AmericanWaterWorks
Yahoo
02-08-2025
- Business
- Yahoo
The Strength of American Water Works Company (AWK) as a Consistent Income Stock
American Water Works Company, Inc. (NYSE:AWK) is included among the 11 Best Income Stocks to Buy According to Hedge Funds. A technician in a deep-water treatment facility, ensuring clean water for public safety. American Water Works Company, Inc. (NYSE:AWK) is a regulated utility that provides water and wastewater services to over 14 million people in 14 states. Its regulated utility operations are the core of its business, accounting for 92 percent of operating revenue in 2024. The company focuses on delivering clean and reliable water services across its service areas. American Water Works Company, Inc. (NYSE:AWK) maintains a strong financial profile, supported by an investment-grade credit rating, which allows it to borrow at lower interest rates and under favorable terms. The company follows a conservative dividend policy, targeting a payout ratio of 50% to 60% of its adjusted earnings. With projected earnings growth between 7% and 9% annually, American Water Works expects its dividend to grow at a similar pace. The company has increased its dividend every year since going public in 2008. American Water Works Company, Inc. (NYSE:AWK) currently pays a quarterly dividend of $0.8275 per share and has a dividend yield of 2.36%, as recorded on July 31. While we acknowledge the potential of AWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Globe and Mail
01-08-2025
- Business
- Globe and Mail
American Water Works (AWK) Q2 Up 11%
Key Points GAAP earnings per share missed estimates in Q2 2025, reflecting higher operating and financing costs. Regulatory progress and acquisitions drove growth, and the dividend was raised 8.2 %. These 10 stocks could mint the next wave of millionaires › American Water Works (NYSE:AWK), the largest publicly traded U.S. water and wastewater utility, reported results for Q2 2025 on July 30, 2025. The company delivered an 11.1% increase in GAAP revenue to $1,276 million compared to Q2 2024, comfortably above analyst GAAP revenue estimates of $1,217.25 million. However, GAAP earnings per share came in at $1.48, missing the anticipated $1.52. This result was shaped by strong regulated revenue growth and higher capital investment, offset by a notable rise in operating and interest costs. Overall, the quarter underscored American Water Works's continued focus on acquisition-driven expansion and infrastructure renewal, while highlighting the importance of regulatory approvals and cost management. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) $1.48 $1.52 $1.42 4.2% Revenue (GAAP) $1,276 million $1,217.25 million $1,149 million 11.1% Operating Income $489 million $449 million 8.9% Net Income Attributable to Common Shareholders $289 million $277 million 4.3% Operating Expenses $787 million $700 million 12.4% Source: Analyst estimates for the quarter provided by FactSet. Company Profile and Strategic Focus American Water Works is a regulated utility serving more than 14 million people across 14 states. Its primary mission is to provide clean water and reliable wastewater services through a network of regulated utilities, which together generated 92% of operating revenue for the year ended December 31, 2024. The company's business revolves around several key focus areas. These include navigating complex regulatory environments to secure rate adjustments, making substantial capital investments in infrastructure renewal, and executing growth through targeted acquisitions. Regulatory approval is crucial, impacting everything from customer rates to the recovery of millions spent on upgrading pipes or water quality systems. Operational efficiency, compliant with evolving environmental mandates and health regulations, remains central to its long-term success. Quarter in Review: Growth Drivers, Challenges, and Notable Activity The second quarter showcased robust regulated revenue gains, driven by both rate increases and acquisition activity. Company-managed net income from its regulated segment rose to $288 million, up from $274 million in Q2 2024, reflecting the effect of new rate cases and recent acquisitions. The regulated segment saw a $121 million increase in operating revenue compared to the prior year period. This growth came largely from the successful implementation of rate adjustments and the closing of new system purchases—including the large-scale acquisition of Nexus Water Group operating systems in eight states, with approximately 87,000 customer connections under agreement in total as of July 30, 2025. Operating expenses, however, rose sharply by $83 million year over year (GAAP), primarily due to higher employee-related and technology costs, general taxes on new capital investment, and costs tied to completed acquisitions. Depreciation also increased, consistent with American Water Works's higher spending on capital investment. Interest expense rose by more than 15% for the three months ended June 30, 2025, compared to the same period in 2024, reflecting increased debt taken to fund ongoing capital projects. Notably, the company made $1.3 billion in capital investments during the first half of 2025, keeping it on pace for a projected $3.3 billion full-year total. On the regulatory front, the company achieved major milestones. Since January 1, 2025, new and ongoing general rate cases and surcharges have authorized an additional $270 million in regulated annualized revenue, with pending cases totaling requests for another $126 million as of the end of the quarter. Progress in states like Missouri, Indiana, and Virginia—where legislative actions now allow forward-testing of investments and acceleration of recovery for specific types of capital costs—could help better align company returns with investment pace, though regulatory lag remains a persistent risk. Recent laws in these states reflect a broader industry push toward more responsive regulation, a key to sustaining cash flows as investment needs climb. Several one-time and recurring factors affected quarter results. Wet weather reduced earnings by $0.03 per diluted share in the quarter and by $0.06 per diluted share for the first half of 2025. Despite this, the company held steady on its infrastructure spending trajectory, citing ongoing and growing needs for environmental improvement and pipe replacement. American Water Works has not adjusted its capital plan in response to new U.S. standards for PFAS or lead in water as of the first quarter of 2025, and estimates compliance will require about $1 billion in capital expenditures by 2029. The continued upward trend in capital expenditures supports not only regulatory obligations but also increased system reliability and resilience, especially for drought-prone regions such as California, where a major desalination project is projected to break ground in 2025. Looking Ahead: Guidance, Dividend, and What to Watch American Water Works tightened its full-year 2025 earnings guidance to $5.70 to $5.75 per share on a weather-normalized basis, up from a previous range of $5.65 to $5.75. Management continues to affirm long-term targets for earnings and dividend growth of 7% to 9%. This confidence rests on a mix of authorized rate increases, ongoing capital deployment, and a strong acquisition pipeline, highlighted by approximately 87,000 customer connections under agreement as of July 30, 2025. Interest income is also receiving a $0.10 per share tailwind in 2025 from the earlier amendment to the seller note on its Homeowner Services sale. The company declared a quarterly dividend of $0.8275 per share for the period, and payable on September 3, 2025. Looking ahead to future quarters, investors should monitor key areas: execution on capital projects, the pace of closing and integrating acquisitions, developments in state-level regulation for rate cases and environmental requirements, as well as any shifts in cost trends—particularly for labor and financing. Though overall leverage remains consistent with internal targets and supports its strong investment-grade credit ratings. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
Yahoo
01-08-2025
- Business
- Yahoo
American Water Works Company Second Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
American Water Works Company (NYSE:AWK) Second Quarter 2025 Results Key Financial Results Revenue: US$1.28b (up 11% from 2Q 2024). Net income: US$289.0m (up 4.3% from 2Q 2024). Profit margin: 23% (down from 24% in 2Q 2024). The decrease in margin was driven by higher expenses. EPS: US$1.48 (up from US$1.42 in 2Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period American Water Works Company Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 2.6%. Looking ahead, revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Water Utilities industry in the US. Performance of the American Water Utilities industry. The company's share price is broadly unchanged from a week ago. Risk Analysis Before we wrap up, we've discovered 2 warning signs for American Water Works Company (1 is concerning!) that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
12-07-2025
- Business
- Yahoo
American Water Works' Quarterly Earnings Preview: What You Need to Know
Camden, New Jersey-based American Water Works Company, Inc. (AWK) provides water and wastewater services. Valued at a market cap of $27.8 billion, the company operates surface water treatment plants, groundwater treatment plants, wastewater treatment plants, miles of transmission, distribution, and collection mains and pipes, groundwater wells, water and wastewater pumping stations, treated water storage facilities, as well as dams. It is scheduled to announce its fiscal Q2 earnings for 2025 after the market closes on Wednesday, Jul. 30. Prior to this event, analysts project this water and wastewater management company to report a profit of $1.48 per share, up 4.2% from $1.42 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the last four quarters, while missing on two other occasions. Its earnings of $1.05 per share in the previous quarter topped the consensus estimates by nearly 1%. Creating a 38% 'Dividend' on SOFI Stock Using Options Joby Aviation Just Hit a New 52-Week High. Should You Buy the Flying Car Stock Here? Nvidia Stock Regains Momentum. Is It Time to Buy, Sell, or Hold NVDA? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For the full year, analysts expect AWK to report EPS of $5.71, up 5.9% from $5.39 in fiscal 2024. Its EPS is expected to further grow by 8.1% year-over-year to $6.17 in fiscal 2026. Shares of AWK have gained 7.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 11.5% rise and the Utilities Select Sector SPDR Fund's (XLU) 18.9% return over the same time frame. On Apr. 30, shares of AWK grew marginally after its better-than-expected Q1 earnings release. The company's operating revenue improved 13% year-over-year to $1.1 billion, surpassing the consensus estimates by a notable margin of 10.7%. Moreover, its net income of $1.05 per share increased 10.5% from the year-ago quarter and came in nearly 1% above the analyst estimates. Looking ahead, AWK expects fiscal 2025 earnings to be between $5.65 and $5.75 per share. Additionally, based on its clear capital growth plan and strong regulatory and operational execution, it also affirmed its long-term targets for both earnings and dividend growth at approximately 7% to 9%. Wall Street analysts are cautious about AWK's stock, with a "Hold" rating overall. Among 15 analysts covering the stock, three recommend "Strong Buy," nine indicate "Hold," two suggest "Moderate Sell,' and one advises a "Strong Sell' rating. The mean price target for AWK is $143.83, which indicates a marginal potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
15-06-2025
- Business
- Yahoo
AWK Makes it to CNBC's All-Weather Stock List
American Water Works Company, Inc. (NYSE:AWK) is one of the best stocks for a retirement stock portfolio. The stock was recently added to CNBC's 'All-Weather Stock List' because of its defensive qualities. Before this, it was also featured in a list by Trivariate Research highlighting the top-performing S&P stocks during the tariff-related market correction from February 18 to April 8. A technician in a deep-water treatment facility, ensuring clean water for public safety. According to the firm, led by former Morgan Stanley chief strategist Adam Parker, American Water Works Company, Inc. (NYSE:AWK) gained over 10% during that period. Parker shared defensive stock ideas as a precaution, even though many of his clients expected the market to continue its upward trend. American Water Works Company, Inc. (NYSE:AWK) likely attracted attention during the correction because its revenue is entirely domestic, making it unaffected by tariffs. In addition, its earnings are seen as stable even in a potential recession. American Water Works Company, Inc. (NYSE:AWK) is a strong dividend stock, having raised its payouts for 17 consecutive years. With a dividend yield of 2.34%, the water utility provides investors with steady income and a buffer against market volatility tied to trade tensions. As seen in April, traders quickly turned to this stock, and would likely do so again in similar conditions. AWK has surged by over 14% since the start of 2025. American Water Works Company, Inc. (NYSE:AWK) stands as the largest regulated provider of water and wastewater services in the US. Founded in 1886, the company serves over 14 million people through its regulated operations across 14 states and 18 military bases, delivering safe, clean, dependable, and affordable water and wastewater solutions. While we acknowledge the potential of AWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
