American States Water Company Misses Earnings Estimates in Q3

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American States Water ($NYSE:AWR) Company missed earnings estimates in the third quarter of 2020, reporting non-GAAP EPS of $0.72, missing analysts’ estimates by $0.01. Revenue for the quarter came in at $134.98 million, also missing estimates by $8.02 million. The company attributed the earnings miss to higher operating expenses, which offset higher revenues in its regulated business segments.

Despite the miss, American States Water Company’s stock price was up slightly in after-hours trading, as investors appeared to be encouraged by the company’s strong performance in its regulated businesses. The company’s regulated businesses make up the vast majority of its overall business, and these segments continue to perform well despite the challenges posed by the pandemic.

Earnings

American States Water Company, one of the largest water service providers in the United States, missed earnings estimates in its latest quarterly report. For the quarter ended June 30, AMERICAN STATES WATER earned 484.6 million in total revenue, compared to previous year’s 488.2 million. This is a 2.9% decrease in total revenue. Net income was 82.6 million, a 12.4% decrease from the previous year. This is the third consecutive quarter that AMERICAN STATES WATER has missed earnings estimates.

In the last three years, total revenue has decreased from 488.2 million to 484.6 million. Investors are concerned about the company’s ability to grow revenue and earnings in the face of increasing costs. American States Water Company is facing many challenges, including the need to upgrade its infrastructure, increasing competition, and regulatory pressures. Despite these challenges, American States Water Company remains one of the largest water service providers in the United States.

Share Price

American States Water Company, which provides water and wastewater services in California, Arizona, and Texas, missed earnings estimates for its third quarter. The company attributed the miss to “unusually high” expenses related to its water operations in California. So far, media exposure to the company’s earnings miss has been mostly negative. On Monday, AMERICAN STATES WATER stock opened at $89.0 and closed at $89.1, up by 0.2% from previous closing price of 88.9.

Investors will be closely watching to see if the company can rebound in the fourth quarter and beyond. Given the challenges that American States Water Company is facing, it remains to be seen if it can meet shareholders’ expectations in the coming quarters.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on AMERICAN STATES WATER are made simple by VI app. According to VI Star Chart AMERICAN STATES WATER is strong in dividend, profitability, medium in asset and weak in growth. AMERICAN STATES WATER is classified as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends.

What type of investors may interested in such company? AMERICAN STATES WATER has an intermediate health score of 5/10 considering its cashflows and debt, might be able to sustain future operations in times of crisis.

VI Peers

The Company operates through two segments: Water and Electric. American States Water Company provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of California and Arizona. The Company is the largest shareholder-owned water utility in California. American States Water Company’s subsidiaries include Golden State Water Company and Arizona Water Company. SJW Group is a publicly traded water and wastewater utility company headquartered in San Jose, California. The Company operates through three segments: Water Utility Services, Real Estate Services, and Corporate and Other. SJW Group provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of California, Texas, Connecticut, and Massachusetts. American Water Works Co Inc is a publicly traded water and wastewater utility company headquartered in Voorhees, New Jersey. The Company operates through three segments: Regulated Businesses, Market-Based Operations, and Homeowner Services. American Water Works Company Inc provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of Illinois, New Jersey, Pennsylvania, Virginia, West Virginia, Kentucky, Ohio, Michigan, Indiana, North Carolina, South Carolina, Maryland, Delaware, Florida, Louisiana, Georgia, Colorado, Nevada, New Mexico, Oklahoma, Texas, and Wyoming. Global Water Resources Inc is a publicly traded water and wastewater utility company headquartered in Scottsdale, Arizona. The Company operates through two segments: Regulated Operations and Non-Regulated Operations. Global Water Resources Inc provides water and wastewater services to residential, commercial, industrial, and governmental customers in the state of Arizona.

– SJW Group ($NYSE:SJW)

SJW Group is a publicly traded water and wastewater utility company headquartered in San Jose, California. It is the holding company for San Jose Water Company, SJWTX, Inc., and SJW Land Company. As of 2019, SJW Group served more than one million people in San Jose, California; Austin, Texas; and Connecticut.

The company has a market cap of 1.88B as of 2022 and a Return on Equity of 7.1%. SJW Group’s market cap is the fourth highest of all water and wastewater utilities in the United States. The company’s ROE is above the average for all water and wastewater utilities in the United States.

– American Water Works Co Inc ($NYSE:AWK)

The American Water Works Company, Inc. is the largest publicly traded U.S. water and wastewater utility company. It provides water and wastewater services to an estimated 15 million people in 47 states and Ontario, Canada. The company operates through six segments: Regulated Businesses, Market-Based Businesses, Homeowner Services, Contracted Services, Other, and Corporate & Other. The company was founded in 1886 and is headquartered in Voorhees, New Jersey.

– Global Water Resources Inc ($NASDAQ:GWRS)

As of 2022, Global Water Resources Inc has a market cap of 277.81M and a ROE of 30.2%. The company is involved in the development, ownership, and operation of water and wastewater utilities in the United States.

Summary

If you’re looking for a water utility company to invest in, American States Water Company might be a good option. One thing to keep in mind, however, is that American States Water Company missed earnings estimates in its most recent quarter. So if you’re considering investing in the company, it’s important to do your own research and make sure you’re comfortable with the risks involved.