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American States Water (AWR) Q4 Earnings & Revenues Beat Mark

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American States Water Company (AWR - Free Report) reported fourth-quarter 2020 operating earnings of 54 cents per share, which surpassed the Zacks Consensus Estimate of 49 cents by 10.2%. Also, the bottom line improved 20% from the year-ago quarter’s earnings of 45 cents per share.

Total Revenues

Operating revenues of $124.2 million beat the Zacks Consensus Estimate of $116 million by 7.1%. Also, the top line improved 9.9% from $113 million in the prior-year quarter.

Operational Update

In the quarter under review, American States Water’s total operating expenses were $94.9 million, up 7.5% year over year. This can primarily be attributed to increase in water purchased, power purchased for pumping and groundwater production assessment expenses.

Operating income was $29.3 million, up 18.4% year over year.

Interest expenses were $5 million, down 12.4% year over year. Also, interest income was $0.4 million, down from $0.6 million in the prior-year quarter.

Segment Details

Earnings in the Water segment were 32 cents per share, up from 28 cents in the prior-year quarter. This upside was mainly driven by a higher water gross margin, resulting from new rates authorized by the California Public Utilities Commission.

Earnings in the Electric segment of 7 cents per share were up from 5 cents in the year-ago quarter. The rise was owing to a higher electric gross margin along with lower operating and interest expenses.

Earnings in the Contracted Services segment were 17 cents per share, up from 12 cents in the year-ago quarter. This was led by ramped-up construction activity and a decline in operating expenses.

Financial Update

As of Dec 31, 2020, American States Water’s cash and cash equivalents were $36.7 million compared with $1.3 million as of Dec 31, 2019.

As of Dec 31, 2020, the company’s long-term debt was $440.3 million, up from $281 million as of Dec 31, 2019.

Zacks Rank

American States Water currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Essential Utilities Inc. (WTRG - Free Report) will post fourth-quarter 2020 earnings on Feb 24, 2021. The Zacks Consensus Estimate is pegged at 46 cents per share.

California Water Service Group (CWT - Free Report) will post fourth-quarter 2020 earnings on Feb 25, 2021. The Zacks Consensus Estimate is pegged at 35 cents per share.

American Water Works Company, Inc. (AWK - Free Report) will post fourth-quarter 2020 earnings on Feb 25, 2021. The Zacks Consensus Estimate is pegged at 80 cents per share.

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