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Factors to Note Ahead of American Water's (AWK) Q2 Earnings
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American Water Works (AWK - Free Report) is set to report second-quarter 2024 earnings on Jul 31 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.47 per share on revenues of $1.07 billion. The estimates indicate a decline of 2.16% but an increase of 2.08% for the top and bottom lines, respectively, from the year-ago reported numbers.
Per our proven model, stocks with a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have the chance of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Price Performance
In the past three months, shares of American Water have risen 16.5% compared with the industry’s and the S&P 500's growth of 12% and 8.6%, respectively.
Image Source: Zacks Investment Research
Factors to Consider
American Water’s second-quarter earnings are likely to have gained from the contribution of assets acquired in the first and second quarters.
AWK generates nearly 100% of its net income from regulated operations. The company’s focus on expanding regulated operations through capital investments has been yielding stable returns, allowing it to increase the value of its shareholders. The new rate, effective Jan 1, 2024, has raised annualized revenues by $121 million. This is likely to have a positive impact on second-quarter earnings.
Stocks to Consider
Investors may consider the following players from the same sector as these have the right combination of elements to post an earnings beat this reporting cycle.
The AES Corporation (AES - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +10.2% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for earnings has moved up 22.2% in the past 30 days. The Zacks Consensus Estimate for sales is pegged at $3.2 billion, which implies a year-over-year increase of 4.7%.
Xcel Energy (XEL - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +6.12% and a Zacks Rank #2 at present.
XEL’s long-term (three to five years) earnings growth rate is 6.39%. The Zacks Consensus Estimate for second-quarter earnings has moved up 8.9% in the past 90 days.
TransAlta (TAC - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +20.00% and a Zacks Rank #1 at present.
The Zacks Consensus Estimate for second-quarter earnings has moved up 20% in the past seven days. It delivered an average earnings surprise of 174.7% in the past four quarters.
Image: Bigstock
Factors to Note Ahead of American Water's (AWK) Q2 Earnings
American Water Works (AWK - Free Report) is set to report second-quarter 2024 earnings on Jul 31 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.47 per share on revenues of $1.07 billion. The estimates indicate a decline of 2.16% but an increase of 2.08% for the top and bottom lines, respectively, from the year-ago reported numbers.
Per our proven model, stocks with a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have the chance of an earnings beat. This is not the case here.
At present, American Water has an Earnings ESP of -0.68% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Price Performance
In the past three months, shares of American Water have risen 16.5% compared with the industry’s and the S&P 500's growth of 12% and 8.6%, respectively.
Image Source: Zacks Investment Research
Factors to Consider
American Water’s second-quarter earnings are likely to have gained from the contribution of assets acquired in the first and second quarters.
AWK generates nearly 100% of its net income from regulated operations. The company’s focus on expanding regulated operations through capital investments has been yielding stable returns, allowing it to increase the value of its shareholders. The new rate, effective Jan 1, 2024, has raised annualized revenues by $121 million. This is likely to have a positive impact on second-quarter earnings.
Stocks to Consider
Investors may consider the following players from the same sector as these have the right combination of elements to post an earnings beat this reporting cycle.
The AES Corporation (AES - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +10.2% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for earnings has moved up 22.2% in the past 30 days. The Zacks Consensus Estimate for sales is pegged at $3.2 billion, which implies a year-over-year increase of 4.7%.
Xcel Energy (XEL - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +6.12% and a Zacks Rank #2 at present.
XEL’s long-term (three to five years) earnings growth rate is 6.39%. The Zacks Consensus Estimate for second-quarter earnings has moved up 8.9% in the past 90 days.
TransAlta (TAC - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +20.00% and a Zacks Rank #1 at present.
The Zacks Consensus Estimate for second-quarter earnings has moved up 20% in the past seven days. It delivered an average earnings surprise of 174.7% in the past four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.