Q1 EPS Estimate for American Water Works Cut by Analyst

Key Points

• Zacks Research has lowered its Q1 2026 earnings per share (EPS) estimate for American Water Works from $1.12 to $1.11, while maintaining a consensus estimate of $5.71 EPS for the full year.
• American Water Works recently stated its quarterly dividend of $0.8275 per share, offering a yield of 2.3% with a payout ratio of 59.64%.
• Despite recent rating changes, the stock holds a consensus rating of "Hold" with a price target averaging $143.57.

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Zacks Research reduced their Q1 2026 earnings per share (EPS) estimates for American Water Works in a note issued to investors on Wednesday, October 8th. Zacks Research analyst Team now forecasts that the utilities provider will post earnings per share of $1.11 for the quarter, down from their prior forecast of $1.12. The consensus estimate for American Water Works' current full-year earnings is $5.71 per share. Zacks Research also issued estimates for American Water Works' Q2 2026 earnings at $1.60 EPS, Q3 2026 earnings at $2.08 EPS, Q4 2026 earnings at $1.37 EPS, Q1 2027 earnings at $1.25 EPS, Q3 2027 earnings at $2.17 EPS and FY2027 earnings at $6.53 EPS.

Several other research analysts have also commented on the company. Mizuho lifted their price target on American Water Works from $148.00 to $149.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Barclays dropped their price target on American Water Works from $138.00 to $128.00 and set an "underweight" rating for the company in a research report on Thursday, July 10th. UBS Group dropped their price target on American Water Works from $156.00 to $151.00 and set a "neutral" rating for the company in a research report on Tuesday, August 12th. Wells Fargo & Company dropped their price target on American Water Works from $147.00 to $141.00 and set an "equal weight" rating for the company in a research report on Friday, August 1st. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of American Water Works in a research report on Wednesday. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $143.57.

American Water Works Trading Down 1.0%

AWK opened at $141.09 on Thursday. The firm has a market cap of $27.53 billion, a P/E ratio of 25.42, a P/E/G ratio of 3.37 and a beta of 0.70. American Water Works has a 12 month low of $118.74 and a 12 month high of $155.50. The company has a current ratio of 0.35, a quick ratio of 0.32 and a debt-to-equity ratio of 1.15. The stock has a 50-day moving average of $140.91 and a 200 day moving average of $142.13.

American Water Works (NYSE:AWK - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The utilities provider reported $1.48 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). 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 for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the prior year, the business earned $1.42 earnings per share. American Water Works's revenue was up 11.1% compared to the same quarter last year. American Water Works has set its FY 2025 guidance at 5.700-5.750 EPS.

Hedge Funds Weigh In On American Water Works

A number of large investors have recently made changes to their positions in AWK. Price T Rowe Associates Inc. MD increased its position in shares of American Water Works by 881.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 3,704,995 shares of the utilities provider's stock worth $546,562,000 after purchasing an additional 3,327,352 shares in the last quarter. Norges Bank acquired a new position in shares of American Water Works during the second quarter worth $344,645,000. Pictet Asset Management Holding SA increased its position in shares of American Water Works by 24.1% during the first quarter. Pictet Asset Management Holding SA now owns 4,532,131 shares of the utilities provider's stock worth $668,566,000 after purchasing an additional 878,951 shares in the last quarter. Groupama Asset Managment increased its position in shares of American Water Works by 114.3% during the first quarter. Groupama Asset Managment now owns 1,505,106 shares of the utilities provider's stock worth $2,296,000 after purchasing an additional 802,639 shares in the last quarter. Finally, Nuveen LLC acquired a new position in shares of American Water Works during the first quarter worth $103,053,000. 86.58% of the stock is owned by institutional investors and hedge funds.

American Water Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Tuesday, August 12th were paid a $0.8275 dividend. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $3.31 dividend on an annualized basis and a yield of 2.3%. American Water Works's payout ratio is 59.64%.

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.

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