American Water (AWK) to Post Q2 Earnings: What's in Store?

American Water Works Company AWK is set to release second-quarter 2022 results on Jul 27, after market close. In the last reported quarter, the company delivered an earnings surprise of 16%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

American Water’s second-quarter earnings are expected to have benefited from efficient cost management and new water rates, effective in different territories.

The ongoing addition in customer volume due to acquisitions and organic means is likely to have increased the demand for water and wastewater services as well as boosted earnings in the second quarter. Stable contribution from Military Service Group is likely to have contributed to its second-quarter earnings.

Expectations

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at $1.15 per share, indicating year-over-year growth of 0.9% from the year-ago reported figure.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $923.7 million, indicating a year-over-year decline of 7.6% from the year-ago reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for American Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here as you see below.

 

American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Water currently has a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

NextEra Energy NEE is likely to come up with an earnings beat when it reports second-quarter 2022 results on Jul 22. It has an Earnings ESP of +2.70% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

NextEra Energy ’s long-term (three to five years) earnings growth is currently pegged at 9.3%. The Zacks Consensus Estimate for NEE’s 2022 EPS indicates 12.2% year-over-year growth.

The AES Corporation AES is likely to come up with an earnings beat when it reports second-quarter 2022 results on Aug 5. It has an Earnings ESP of +7.32% and a Zacks Rank of 3, currently.

AES’ long-term earnings growth is currently pegged at 7.5%. The Zacks Consensus Estimate for 2022 EPS of AES suggests a 5.9% year-over-year increase.

TransAlta Corporation TAC is likely to come up with an earnings beat when it reports second-quarter 2022 results on Aug 5. It has an Earnings ESP of +11.11% and a Zacks Rank of 2, currently.

TransAlta reported average earnings surprise of 52.2% in the last four earnings quarter. The Zacks Consensus Estimate for TAC’s 2022 EPS implies a 178.3% year-over-year rise.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
The AES Corporation (AES) : Free Stock Analysis Report
 
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American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
 
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