We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is American Water Works (AWK) Poised for Q1 Earnings Beat?
Read MoreHide Full Article
American Water Works Company (AWK - Free Report) is scheduled to report first-quarter 2018 results, after the market closes on May 2. In the fourth quarter of 2017, the company delivered a positive earnings surprise of 4.55%.
Why is a Positive Surprise Likely?
A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. Per our model, American Water is likely to beat earnings this quarter as it possesses these components.
Zacks ESP: The company’s Earnings ESP is +2.44%. This is because the Most Accurate estimate is 56 cents while the Zacks Consensus Estimate is pegged at 55 cents.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water Works currently has a Zacks Rank #3, which increases the possibility of a beat when combined with a positive Earnings ESP.
However, we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Factors to Consider
American Water Works continues to benefit from its geographical diversity which reduces the weather and regulatory risks of earnings. The company will gain from new water rates, approved by the Pennsylvania Public Utility Commission, effective Jan 1, 2018, and will increase annual revenues by $62 million.
Through infrastructure investments and acquisitions, American Water Works will continue to strengthen customer base and expand its service area. The acquisition of Village of Fisher’s water and wastewater systems in the first quarter added 850 customers to its existing customer base. It is expected to boost the company’s earnings.
The Zacks Consensus Estimate for first-quarter revenues and earnings per share is pegged at $787 million and 55 cents, reflecting year-over-year growth of 4.1% and 5.8%, respectively.
Other Stocks With Favorable Combination
Here are a few other companies from the Zacks Utilities Sector that have the right combination of elements to post an earnings beat this quarter.
PPL Corporation (PPL - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3. It is expected to report first-quarter 2018 earnings on May 3.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.66%. It carries a Zacks Rank #3 and is anticipated to report first-quarter 2018 earnings on May 10.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Is American Water Works (AWK) Poised for Q1 Earnings Beat?
American Water Works Company (AWK - Free Report) is scheduled to report first-quarter 2018 results, after the market closes on May 2. In the fourth quarter of 2017, the company delivered a positive earnings surprise of 4.55%.
Why is a Positive Surprise Likely?
A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. Per our model, American Water is likely to beat earnings this quarter as it possesses these components.
Zacks ESP: The company’s Earnings ESP is +2.44%. This is because the Most Accurate estimate is 56 cents while the Zacks Consensus Estimate is pegged at 55 cents.
American Water Works Price and EPS Surprise
American Water Works Price and EPS Surprise | American Water Works Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water Works currently has a Zacks Rank #3, which increases the possibility of a beat when combined with a positive Earnings ESP.
However, we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Factors to Consider
American Water Works continues to benefit from its geographical diversity which reduces the weather and regulatory risks of earnings. The company will gain from new water rates, approved by the Pennsylvania Public Utility Commission, effective Jan 1, 2018, and will increase annual revenues by $62 million.
Through infrastructure investments and acquisitions, American Water Works will continue to strengthen customer base and expand its service area. The acquisition of Village of Fisher’s water and wastewater systems in the first quarter added 850 customers to its existing customer base. It is expected to boost the company’s earnings.
The Zacks Consensus Estimate for first-quarter revenues and earnings per share is pegged at $787 million and 55 cents, reflecting year-over-year growth of 4.1% and 5.8%, respectively.
Other Stocks With Favorable Combination
Here are a few other companies from the Zacks Utilities Sector that have the right combination of elements to post an earnings beat this quarter.
PPL Corporation (PPL - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3. It is expected to report first-quarter 2018 earnings on May 3.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.66%. It carries a Zacks Rank #3 and is anticipated to report first-quarter 2018 earnings on May 10.
IDACORP, Inc (IDA - Free Report) has an Earnings ESP of +3.55%. The company has a Zacks Rank #2 and is expected to report first-quarter 2018 earnings on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>