Overview
American Water Q3 revenue beats analyst expectations, operating income misses estimates
Company affirms 2025 weather-normalized EPS guidance, initiates 2026 guidance with 8% growth
Announced merger with Essential Utilities, expected closing in Q1 2027
Outlook
American Water affirms 2025 weather-normalized EPS guidance range of $5.70 to $5.75
Company initiates 2026 EPS guidance range of $6.02 to $6.12
American Water announces 2026-2030 capital plan of $19 bln to $20 bln
Result Drivers
RATE INCREASES - Revenue growth driven by authorized rate increases and infrastructure surcharges
HIGHER EXPENSES - Operating expenses rose due to increased employee and technology costs, and higher depreciation
INTEREST EXPENSE - Higher interest expenses due to increased debt for capital investments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.45 bln | $1.35 bln (3 Analysts) |
Q3 Net Income | $379 mln | ||
Q3 Operating Income | Miss | $614 mln | $632 mln (1 Analyst) |
Q3 Operating Expenses | $837 mln | ||
Q3 Pretax Profit | $494 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the water & related utilities peer group is "buy."
Wall Street's median 12-month price target for American Water Works Co Inc is $143.50, about 6.1% above its October 28 closing price of $134.81
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago
Press Release: ID:nBwby8SbCa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)