Camden, New Jersey-based American Water Works Company, Inc. (AWK) provides water and wastewater services. Valued at a market cap of $27.8 billion, the company operates surface water treatment plants, groundwater treatment plants, wastewater treatment plants, miles of transmission, distribution, and collection mains and pipes, groundwater wells, water and wastewater pumping stations, treated water storage facilities, as well as dams. It is scheduled to announce its fiscal Q2 earnings for 2025 after the market closes on Wednesday, Jul. 30.
Prior to this event, analysts project this water and wastewater management company to report a profit of $1.48 per share, up 4.2% from $1.42 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in two of the last four quarters, while missing on two other occasions. Its earnings of $1.05 per share in the previous quarter topped the consensus estimates by nearly 1%.
For the full year, analysts expect AWK to report EPS of $5.71, up 5.9% from $5.39 in fiscal 2024. Its EPS is expected to further grow by 8.1% year-over-year to $6.17 in fiscal 2026.
Shares of AWK have gained 7.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 11.5% rise and the Utilities Select Sector SPDR Fund’s (XLU) 18.9% return over the same time frame.
On Apr. 30, shares of AWK grew marginally after its better-than-expected Q1 earnings release. The company’s operating revenue improved 13% year-over-year to $1.1 billion, surpassing the consensus estimates by a notable margin of 10.7%. Moreover, its net income of $1.05 per share increased 10.5% from the year-ago quarter and came in nearly 1% above the analyst estimates. Looking ahead, AWK expects fiscal 2025 earnings to be between $5.65 and $5.75 per share. Additionally, based on its clear capital growth plan and strong regulatory and operational execution, it also affirmed its long-term targets for both earnings and dividend growth at approximately 7% to 9%.
Wall Street analysts are cautious about AWK’s stock, with a "Hold" rating overall. Among 15 analysts covering the stock, three recommend "Strong Buy," nine indicate "Hold," two suggest "Moderate Sell,” and one advises a "Strong Sell” rating. The mean price target for AWK is $143.83, which indicates a marginal potential upside from the current levels.
