A month has gone by since the last earnings report for American States Water (AWR). Shares have added about 2.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American States Water due for a pullback? 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's Q4 Earnings In Line, Up Y/Y
American States Water Company generated fourth-quarter 2018 operating earnings of 37 cents per share, in line with the Zacks Consensus Estimate. Further, the bottom line improved 5.7% from 35 cents in the year-ago quarter.
In 2018, earnings came in at $1.72 per share compared with $1.75 in 2017.
Total Revenues
Operating revenues amounted to $111 million, which beat the Zacks Consensus Estimate of $107 million by 3.7%. The top line improved 6.5% from $104.2 in the prior-year quarter. Total revenues increased primarily on the back of higher revenues in the Contracted services segment, which was up by nearly 23.2%.
In 2018, the company delivered revenues of $436.8 million compared with $440.6 million in 2017.
Operational Update
In the quarter under review, American States Water’s total operating expenses were $88.2 million, up 7.3% year over year.
Interest expenses were $5.5 million, up 10.8% year over year. Also, interest income was $1.7 million, up 199.2% year over year.
Segment Details
Earnings in the Water segment were 17 cents, down from 18 cents in the prior-year quarter.
Earnings in the Electric segment amounted to 3 cents, up from 2 cents in the year-ago quarter.
Earnings in the Contracted Services segments were 18 cents, which rallied 63.6% from the year-ago quarter’s tally.
Financial Update
As of Dec 31, 2018, American States Water’s cash and cash equivalents were $7.1 million compared with $0.21 million as of Dec 31, 2017.
As of Dec 31, 2018, the company’s long-term debts were down at $281 million compared with $321 million as of Dec 31, 2017.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -7.69% due to these changes.
VGM Scores
At this time, American States Water has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, American States Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
American States Water Company (AWR): Free Stock Analysis Report
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