American States Water Q2 Earnings & Sales Top Estimates

American States Water Company AWR reported second-quarter 2024 operating earnings per share of 85 cents, which beat the Zacks Consensus Estimate of 84 cents by 1.2%.

Total Revenues

Operating revenues came in at $155.3 million, which outpaced the Zacks Consensus Estimate of $138 million by 12.6%. However, the top line declined 1.3% from $157.4 million reported in the prior-year period.

Highlights of the Release

Operating expenses in the quarter totaled $103.6 million, up 5.2% from the year-ago quarter's level of $98.5 million. This was due to higher water purchased for pumping expenses, administrative and general costs, and other operation costs.

Operating income totaled $51.7 million, down 12.2% from $58.9 million recorded in the corresponding period of 2023.

Interest expenses amounted to $13.1 million, up 22.5% year over year. Interest income totaled $2.1 million, up 16.1% year over year.

Segmental Details

Earnings from the Water segment came in at 67 cents per share, down 26.4% from 91 cents a year ago.

EPS from the Electric segment was 1 cent, down 2 cents from the year-ago quarter's level.

EPS from the Contracted Services segment was 19 cents, up 58.3% year over year.

The loss from AWR (Parent) was 2 cents per share, in line with the year-ago quarter's loss.

Financial Update

As of Jun 30, AWR's cash and cash equivalents totaled $3.6 million compared with $14.1 million as of Dec 31, 2023.

As of Jun 30, the company's long-term debt was $640 million compared with $575.6 million as of Dec 31, 2023.

In the first six months of 2024, cash provided by operating activities totaled $70.5 million compared with $17.8 million in the year-ago period.

Zacks Rank

American States Water currently has a Zacks Rank #3 (Hold).

Recent Releases

American Water Works Company AWK posted second-quarter 2024 operating EPS of $1.42, which lagged the Zacks Consensus Estimate of $1.47 by 3.4%.

AWK's long-term (three-to-five years) earnings growth rate is 8%. The company delivered an average earnings surprise of 1.1% in the past four quarters.

California Water Service Group CWT recorded second-quarter 2024 adjusted earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 79.5%.

The Zacks Consensus Estimate for 2024 EPS reflects year-over-year growth of 257.1%. The company delivered an average earnings surprise of 125.4% in the past four quarters.

Essential Utilities Inc. WTRG delivered second-quarter 2024 operating EPS of 28 cents, which lagged the Zacks Consensus Estimate of 30 cents by 6.7%.

WTRG's long-term earnings growth rate is 5.75%. The Zacks Consensus Estimate for 2024 EPS reflects year-over-year growth of 5.9%.

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