American Water Works Company, Inc. (AWK), headquartered in Camden, New Jersey, is a leading provider of water and wastewater services. Valued at $24.1 billion by market cap, the company delivers safe, reliable, and affordable water and wastewater services, operates on military bases, manages municipal contracts, and supports 3.5 million customers in 1,700 communities across 14 states with extensive infrastructure. The water utility giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Thursday, Feb. 20.
Ahead of the event, analysts expect AWK to report a profit of $1.13 per share on a diluted basis, up 28.4% from $0.88 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect AWK to report EPS of $5.29, up 8% from $4.90 in fiscal 2023. Its EPS is expected to rise 7.8% year over year to $5.70 in fiscal 2025.
AWK stock has underperformed the S&P 500’s ($SPX) 24.6% gains over the past 52 weeks, with shares down 3.1% during this period. Similarly, it underperformed the Utilities Select Sector SPDR Fund’s (XLU) 25.7% gains over the same time frame.
On Oct. 30, AWK shares closed down marginally after reporting its Q3 results. Its revenue was $1.3 billion, exceeding Wall Street forecasts of $1.2 billion. The company’s EPS of $1.80, missed analyst estimates of $1.84. AWK expects full-year EPS to be between $5.25 and $5.30.
Analysts’ consensus opinion on AWK stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 15 analysts covering the stock, four advise a “Strong Buy” rating, one suggests a “Moderate Buy,” eight give a “Hold,” and two recommend a “Moderate Sell.” AWK’s average analyst price target is $142.75, indicating a potential upside of 13% from the current levels.
