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American States Water (AWR) Down 2.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for American States Water (AWR - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is American States Water due for a breakout? 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 Q4 Earnings & Revenues Beat Mark
American States Water Company 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, American States Water has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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.
Outlook
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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American States Water (AWR) Down 2.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for American States Water (AWR - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is American States Water due for a breakout? 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 Q4 Earnings & Revenues Beat Mark
American States Water Company 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, American States Water has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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.
Outlook
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.