It has been about a month since the last earnings report for American States Water (AWR Quick QuoteAWR - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American States Water due for a breakout? 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 drivers.

American States Water Q3 Earnings Miss Estimates, Revenues Rise Y/Y

American States Water Company reported third-quarter 2024 operating earnings per share (EPS) of 95 cents, which lagged the Zacks Consensus Estimate of 99 cents by 4%.

AWR’s Total Revenues

Operating revenues came in at $161.8 million, which outpaced the Zacks Consensus Estimate of $161 million by 0.5%. The top line also rose 6.6% from $151.7 million reported in the prior-year period.

Highlights of AWR’s Release

Operating expenses in the quarter totaled $106.7 million, up 6.8% from the year-ago quarter’s $99.9 million. This was due to higher water purchased for pumping expenses, administrative and general costs and other operation costs.

The operating income totaled $55.1 million, up 6.4% from $51.8 million recorded in the corresponding period of 2023.

Interest expenses amounted to $13.2 million, up 13.1% year over year. Interest income totaled $1.7 million, down 18.2% year over year.

AWR’s Segmental Details

Earnings from the Water segment came in at 84 cents per share, up 16.7% from 72 cents a year ago.

EPS from the Electric segment was 2 cents, down by 2 cents from the year-ago quarter’s level.

EPS from the Contracted Services segment was 11 cents, down 8.3% year over year.

The loss from AWR (Parent) was 2 cents per share, in line with the year-ago quarter’s loss.

AWR’s Financial Update

As of Sept. 30, AWR’s cash and cash equivalents totaled $16.5 million compared with $14.1 million as of Dec. 31, 2023.

As of Sept. 30, the company’s long-term debt was $640.2 million compared with $575.6 million as of Dec. 31, 2023.

In the first nine months of 2024, cash provided by operating activities totaled $134.2 million compared with $56.5 million in the year-ago period.

 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 5.36% due to these changes.

VGM Scores

At this time, American States Water has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth 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 trending upward for the stock, and the magnitude of this revision looks promising. Notably, American States Water has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

American States Water is part of the Zacks Utility - Water Supply industry. Over the past month, Essential Utilities (WTRG Quick QuoteWTRG - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended September 2024 more than a month ago.

Essential Utilities reported revenues of $435.26 million in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $0.25 for the same period compares with $0.30 a year ago.

Essential Utilities is expected to post earnings of $0.65 per share for the current quarter, representing a year-over-year change of +30%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Essential Utilities. Also, the stock has a VGM Score of D.