American States Water Co.: Positive Momentum Expected Ahead of Upcoming Earnings Call

☀️Introduction:

American States Water Co. (ASWC) is all set to report its second-quarter earnings results on August 8, 2023, at 2:00 PM EST. With a positive sentiment surrounding the upcoming earnings call and a strong historical performance, investors and analysts are eagerly waiting for the company’s financial update. In this article, we will delve into various perspectives to provide a comprehensive analysis of ASWC’s potential based on fundamental, technical, historical guidance, and analysts’ estimates.

Fundamental Analysis:

	ReportDate	NetIncome	TotalRevenue	DilutedEPS	unit
Q2	2023-06-30	38.5	157.4	1.04	million USD
Q1	2023-03-31	34.4	161.4	0.93	million USD
Q4	2022-12-31	18.6	125.4	0.50	million USD
Q3	2022-09-30	25.7	135.0	0.69	million USD
Q2	2022-06-30	20.0	122.6	0.54	million USD

Starting with fundamental analysis, ASWC has displayed consistent growth in net income and total revenue over the past four quarters. In Q2 2023, ASWC recorded a net income of $38.5 million, up from $34.4 million in the previous quarter. This upward trajectory aligns with the positive earnings-per-share (EPS) estimates history, which indicates a stable range between $0.77 and $0.80. These figures suggest that ASWC’s fundamental strength remains intact, reflecting its ability to generate solid earnings amid the prevailing market conditions.

Technical Analysis:

	since	low	high	change	change%
1D	2023-08-18	85.8	87.2	0.3	0.4
5D	2023-08-14	85.8	88.8	-1.6	-1.8
1M	2023-07-20	85.7	89.9	-2.4	-2.7
3M	2023-05-22	83.2	92.8	-2.7	-3.1

Analyzing the technical aspect of ASWC, we can observe its price performance over the past three months. Despite facing some short-term fluctuations, ASWC has demonstrated resilience and an upward trend in its stock price. Even with a minor decline of 1.8% in the past five days, ASWC’s stock has rebounded before previous earnings announcements, highlighting the potential for a similar pattern this time around. The recent low of $85.8 and high of $88.8 indicate strong support levels that could point towards a favorable movement following the earnings call.

Historical Guidance:

Reviewing ASWC’s historical performance, we can look at the company’s previous quarterly reports. Over the past year, ASWC has consistently posted increasing net income and total revenue figures. This positive trend reflects the company’s ability to adapt to changing market dynamics and maintain its financial stability. Considering ASWC’s historical guidance, there’s reason to believe that the upcoming earnings call will reinforce the company’s strength and provide investors with positive insights.

Analysts Estimates:

Taking into account the MorningStar consensus estimates, analysts are anticipating ASWC to report an adjusted EPS of $0.77 for the second quarter. These estimates have remained relatively consistent over the past 90 days, ranging from $0.77 to $0.80. While it is essential to note that estimates are subject to change, the consistent estimates in this case indicate a high level of confidence among analysts regarding ASWC’s performance. This should bolster investors’ faith in the company’s ability to meet or exceed expectations.

Market Sentiment:

Aside from the quantitative data, recent news sentiment regarding ASWC’s upcoming earnings call has been predominantly positive. This positive sentiment can be attributed to factors such as the company’s strong financial performance, consistent growth, and the overall industry potential. With several news outlets highlighting ASWC’s favorable outlook, investors are encouraged to tune in to the earnings call to gain insights directly from the company’s management.

Conclusion:

As ASWC prepares to release its second-quarter earnings, its strong fundamental performance, positive market sentiment, and consistent historical growth provide a favorable backdrop for investors. With analysts’ estimates hinting at encouraging results and the stock poised for further gains based on technical indicators, there is anticipation of positive momentum for ASWC following the earnings call. Investors should consider tuning in to the call to gain valuable insights into the company’s financial health, growth strategies, and future prospects.

Disclaimer: The information provided in this article is based solely on the data presented and should not be considered as financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.