Earnings Outlook For American States Water

American States Water AWR releases its next round of earnings this Monday, May 03. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

American States Water earnings will be near $0.45 per share on sales of $100.91 million, according to analysts. American States Water earnings in the same period a year ago was $0.46 per share. Quarterly sales came in at $109.08 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 2.17%. Sales would be down 7.49% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

For a full 12 months, the return has risen by 1.98%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. American States Water is scheduled to hold the call at 14:00:00 ET and can be accessed here.