American Water Works (NYSE:AWK) Issues Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• American Water Works reported an earnings per share (EPS) of $1.48, missing analyst expectations of $1.53 by $0.05, while revenue increased by 11.1% year-over-year.
• The company's stock price fell by 0.7%, trading at $139.93, with a market cap of $27.29 billion and a price-to-earnings ratio of 25.49.
• American Water Works announced a quarterly dividend of $0.8275 per share, translating to an annualized dividend of $3.31 and a yield of 2.37%.

American Water Works (NYSE:AWK - Get Free Report) released its earnings results on Wednesday. The utilities provider reported $1.48 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05), Zacks reports. American Water Works had a net margin of 21.91% and a return on equity of 10.34%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the business posted $1.42 EPS. American Water Works's revenue was up 11.1% compared to the same quarter last year. American Water Works updated its FY 2025 guidance to 5.700-5.750 EPS.

American Water Works Price Performance

NYSE:AWK traded up $5.48 during trading hours on Friday, reaching $145.72. 2,693,140 shares of the company traded hands, compared to its average volume of 1,105,963. American Water Works has a 1-year low of $118.74 and a 1-year high of $155.50. The firm's 50-day moving average is $141.20 and its 200-day moving average is $138.96. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.35 and a quick ratio of 0.44. The stock has a market cap of $28.43 billion, a P/E ratio of 26.26, a P/E/G ratio of 3.32 and a beta of 0.65.

American Water Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Tuesday, August 12th will be issued a dividend of $0.8275 per share. This represents a $3.31 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Tuesday, August 12th. American Water Works's dividend payout ratio is 59.64%.

Wall Street Analyst Weigh In

A number of research firms have commented on AWK. Barclays reduced their target price on American Water Works from $138.00 to $128.00 and set an "underweight" rating for the company in a report on Thursday, July 10th. Mizuho raised their price objective on American Water Works from $148.00 to $149.00 and gave the company a "neutral" rating in a research note on Friday. Wall Street Zen downgraded American Water Works from a "hold" rating to a "sell" rating in a research note on Wednesday, May 14th. Wells Fargo & Company dropped their price objective on American Water Works from $147.00 to $141.00 and set an "equal weight" rating for the company in a research note on Friday. Finally, UBS Group reaffirmed a "neutral" rating and issued a $156.00 price objective (up from $154.00) on shares of American Water Works in a research note on Friday, July 11th. Four equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $142.00.

Insider Activity

In other news, CAO Melissa K. Wikle sold 2,825 shares of the firm's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $143.28, for a total transaction of $404,766.00. Following the sale, the chief accounting officer owned 7,572 shares in the company, valued at $1,084,916.16. This trade represents a 27.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On American Water Works

A hedge fund recently raised its stake in American Water Works stock. Woodline Partners LP boosted its position in American Water Works Company, Inc. (NYSE:AWK - Free Report) by 40.7% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 16,466 shares of the utilities provider's stock after acquiring an additional 4,762 shares during the quarter. Woodline Partners LP's holdings in American Water Works were worth $2,429,000 as of its most recent filing with the Securities and Exchange Commission. Institutional investors and hedge funds own 86.58% of the company's stock.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.