American States Water Company (NYSE:AWR) AWR is set to release second-quarter 2020 results on Aug 3, after market close. The company has a trailing four-quarter earnings surprise of 5.92%, on average.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
The extended stay-at-home orders are expected to have increased demand for potable water during the second quarter. Evidently, the company decided to provide uninterrupted services to all customers despite non-payment of fees, which in turn, might offset the upbeat demand scenario to some extent.
The second-quarter earnings are expected to have benefited from new water and electric rates authorized by the California Public Utilities Commission in the first quarter.
However, the second-quarter cash receipts of American States Water are expected to have declined year over year due to the impact of stay-at-home orders on the economy to check the spread of novel coronavirus.
Q2 Expectations
The Zacks Consensus Estimate for second-quarter 2020 sales is pegged at $119 million, indicating a decline of 4.53% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 69 cents per share, suggesting a 7.81% rise from the year-earlier quarter’s reported number.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for American States Water this time round. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise.
American States Water Company Price and EPS Surprise
American States Water Company price-eps-surprise | American States Water Company Quote
Earnings ESP: American States Water has an Earnings ESP of +2.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American States Water currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other companies worth considering from the same sector that have the right combination of elements to also beat on earnings in the upcoming releases.
American Water (NYSE:AWK) Works Company, Inc. AWK is set to release second-quarter 2020 numbers on Aug 5. It has an Earnings ESP of +1.18% and a Zacks Rank #2 at present.
Essential Utilities (NYSE:WTRG) Inc. WTRG is scheduled to release second-quarter results on Aug 5. It has an Earnings ESP of +7.75% and a Zacks Rank of 2, currently.
WEC Energy Group (NYSE:WEC), Inc. WEC is scheduled to release second-quarter results on Aug 4. It has an Earnings ESP of +0.96% and is presently Zacks #2 Ranked.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WEC Energy Group, Inc. (WEC): Free Stock Analysis Report
American States Water Company (AWR): Free Stock Analysis Report
American Water Works Company, Inc. (AWK): Free Stock Analysis Report
Essential Utilities Inc. (WTRG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research