American States Water Company Soars in Q3 Earnings Call, CEO Announces Strong Growth for 2024

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American States Water ($NYSE:AWR) Company is a publicly traded water utility company based in San Dimas, California. It serves over 1 million customers in California and provides water and electric services through its subsidiaries. The company’s stock, listed as AWR on the New York Stock Exchange, has been steadily growing in recent years. This surge in profit has been attributed to a combination of factors such as cost management, customer growth, and improved operational efficiency. One of the key highlights of the earnings call was CEO Bob Sprowls’ announcement of a rise in earnings per share. This news came as a pleasant surprise to investors and industry analysts, who have been closely monitoring the company’s performance. In addition to this, Sprowls also shared that the company has set ambitious growth targets for 2024, which it aims to achieve through various strategic initiatives. Despite facing challenges such as droughts and regulatory constraints, American States Water Company has consistently performed well and maintained its position as a leader in the water utility industry.

The company’s strong financial health and efficient operations have helped it weather these challenges and continue to grow. One of the key factors contributing to the company’s success is its commitment to providing reliable and high-quality services to its customers. This has not only helped in retaining existing customers but has also attracted new customers, resulting in a steady increase in the company’s customer base. Moreover, American States Water Company continues to invest in infrastructure upgrades and modernization to ensure the continued delivery of clean and safe water to its customers. These efforts have also helped the company in improving its operational efficiency, leading to cost savings and ultimately higher profits. With its solid financial performance, strategic initiatives, and commitment to customer satisfaction, the company is well-positioned to achieve its growth targets in 2024 and continue to soar in the coming years.

Price History

On Friday, AMERICAN STATES WATER (NYSE:AWR) saw a significant increase in its stock price, opening at $85.17 and closing at $86.45. This marked a 2.21% increase from the previous day’s closing price of $84.58. The rise in stock price was attributed to the positive news announced during the company’s third quarter earnings call. He highlighted the company’s success in diversifying its business and expanding its customer base, leading to a steady increase in revenue and earnings. According to Sprowls, the company is continuously investing in infrastructure upgrades and efficiency measures to ensure a reliable water supply for its customers. In addition to its water services, American States Water also has a thriving contracts segment through its subsidiary, American States Utility Services, Inc., which provides operation, maintenance, and construction services to military bases across the country.

This segment has seen an increase in demand due to the continued expansion of the US military. The company’s financial performance in the third quarter also reflects its growth potential. Overall, American States Water’s strong performance in the third quarter and its CEO’s optimistic outlook for 2024 have boosted investor confidence in the company’s potential for continued growth. With a solid track record and a diversified business portfolio, American States Water is well-positioned to continue its upward trajectory in the coming years. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis

As a fundamental analyst, I have carefully examined AMERICAN STATES WATER and have determined that it is a strong company with sound fundamentals. The company’s assets, profitability, and dividend are all indicators of a healthy and stable business. These factors suggest that AMERICAN STATES WATER has strong financial backing and is well-positioned to weather any economic downturns. Based on my analysis of the company’s Star Chart, I have assigned AMERICAN STATES WATER a medium rating for growth. This means that while the company may not be experiencing rapid growth at the moment, it still has potential for future expansion. This is a positive sign for investors, as it indicates that the company has room for further development and can continue to generate returns in the long term. In terms of financial health, I have given AMERICAN STATES WATER an intermediate score of 6 out of 10. This takes into consideration their cash flow and debt levels, indicating that the company is in a solid position to manage any potential crises without being at risk of bankruptcy. This should provide reassurance to investors that their investment is relatively safe and secure. AMERICAN STATES WATER falls under the category of ‘gorilla’ companies, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This suggests that AMERICAN STATES WATER has a dominant market position and is able to maintain its growth due to its strong brand, loyal customer base, and efficient operations. This is a positive sign for potential investors as it indicates the company’s continued success and sustainability. Overall, based on my analysis, I believe that AMERICAN STATES WATER would be an attractive investment opportunity for investors who are looking for a stable and profitable company with potential for future growth. Its strong fundamentals, intermediate financial health, and classification as a ‘gorilla’ company make it an appealing choice for both conservative and growth-oriented investors. More…

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

American States Water Company had a successful third quarter in 2024, with an increase in earnings per share reported by CEO Bob Sprowls. This positive growth is a promising sign for investors, indicating that the company is on track to achieve financial success. This could make American States Water Company a favorable investment opportunity for those looking to invest in a stable and successful company. Overall, the company’s solid performance in Q3 showcases its strength and potential, making it an attractive investment option for investors.