NYSE$AWK

American Water Works Co Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a strong third quarter with earnings up 9.8% per share compared to 2019 results.

American Water reported a strong third quarter with earnings per share up 9.8% compared to 2019. The company invested $450 million during the quarter, primarily in Regulated Businesses, and added over 47,000 customers through acquisitions and organic growth. They were also awarded a water and wastewater contract with Joint Base Lewis-McChord.

  • Third quarter 2020 diluted earnings were $1.46 per share, compared to $1.33 per share in 2019, a 9.8% increase.
  • Quarter results reflect an estimated favorable impact of $0.06 per share from warmer and drier weather in 2020, compared to 2019
  • Quarter results reflect an estimated favorable impact of $0.03 per share from changes in customer revenue and impacts on the Homeowner Services Group resulting from the COVID-19 pandemic
  • Quarter results also reflect a favorable impact from depreciation not recorded as required by assets held for sale accounting of $0.01 per share

Headline financials

Total Revenue

$1.07B

Previous: $1.01B+6.0%
EPS (adj)

$1.46

Previous: $1.33+9.8%
Capital Expenditures

-$444M

Previous: -$403M-10.2%
Free Cash Flow

-$180M

Previous: -$163M-10.4%
Net Income

$264M

Previous: $240M+10.0%
Operating Income

$433M

Previous: $406M+6.7%
Gross Profit

$660M

Previous: $0.00
Cash & Equivalents

$560M

Previous: $94M+495.7%
Total Assets

$24.4B

Previous: $22.2B+9.7%

Revenue & EPS history

American Water · Revenue · Quarterly

$1.07B

Q3 2020+6%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

American Water · $3.59B total across 1 segment · Q1 2023

  • Regulated Businesses
    $3.59B

Forward guidance

The Company now expects its 2020 earnings to be in the range of $3.87 per share to $3.93 per share, up from the previous guidance range of $3.79 per share to $3.89 per share.

Tailwinds

  • Guidance range reflects the favorable benefit of weather year-to-date and assumes normal weather for the remainder of the year.
  • Guidance includes an estimated $0.06 per share for depreciation not recorded as required by assets held for sale accounting.
  • Increased earnings guidance range to $3.87 to $3.93 per share.
  • Company continues to grow business through consistent execution of strategies.
  • Awarded water and wastewater contract with Joint Base Lewis-McChord.

Headwinds

  • Guidance includes an estimated $0.03 per share to $0.06 per share unfavorable impact from the COVID-19 pandemic.
  • Full year estimated impact of COVID-19 is highly dependent on the projected impact of a number of unknown factors.
  • Length and severity of any impact on the demand for services.
  • Nature and scope of regulatory solutions.
  • Earnings forecasts are subject to numerous risks and uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+5.8%

Q3 2023

Best reaction

-4.9%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-4.5%-6.5%
Q4 2025-1.2%+2.2%+3.5%
Q3 2025-2.7%-1.5%+0.0%
Q1 2025-0.4%+1.5%-2.7%
Q4 2024+0.6%+7.3%+10.4%
Q3 2024+1.7%-0.4%+0.8%
Q2 2024+0.6%-0.7%-0.4%
Q1 2024+3.0%+6.5%+6.9%
Q4 2023+3.7%+2.5%-2.2%
Q3 2023+5.8%+8.4%+13.3%
Q2 2023+0.1%-0.6%-5.3%
Q1 2023-2.6%-3.8%-5.9%
Q4 2022-1.2%+0.2%-5.0%
Q3 2022-2.8%-4.7%+4.0%
Q2 2022+3.3%+4.0%+0.4%
Q1 2022+1.5%-6.0%-4.1%
Q4 2021+0.9%+1.0%+8.1%
Q3 2021-3.3%-2.3%-1.9%
Q2 2021+3.1%+4.3%+8.4%
Q1 2021-0.4%-2.1%-0.4%
Q4 2020-4.9%-6.0%-4.5%
Q3 2020+0.7%+3.3%-5.2%
Q2 2020-0.4%+1.1%-2.9%
Q1 2020-3.5%-3.2%+6.6%
Q4 2019-0.4%-1.1%-17.4%
Q3 2019+3.1%+0.4%+1.2%
Q2 2019+1.7%+0.2%+10.6%
Q1 2019-1.4%-0.9%+4.5%
Q4 2018+0.6%+3.0%+8.3%
Q3 2018-2.1%-2.2%+5.8%
Q2 2018-0.8%+0.0%-0.8%
Q1 2018-1.5%-2.1%-5.2%
Q4 2017-2.0%+0.2%-0.4%
Q3 2017+1.9%+1.0%+3.9%
Q2 2017-0.9%+0.0%-0.7%
Q1 2017-4.3%-3.2%-0.1%
Q4 2016+1.5%+3.4%+3.6%
Q3 2016-1.3%-2.3%-0.7%
Q2 2016-2.3%-5.4%-8.9%
Q1 2016-1.0%
Q4 2015-2.8%
Q3 2015+0.8%
Q2 2015+1.1%
Q1 2015-0.9%
Q4 2014+0.3%
Q3 2014-1.1%
Q2 2014-0.1%
Q1 2014+1.2%
Q4 2013+0.2%
Q3 2013+0.2%
Q2 2013+0.4%
Q1 2013+0.1%
Q4 2012+0.3%
Q3 2012-2.0%
Q2 2012+3.8%
Q1 2012+0.2%
Q4 2011+1.1%
Q3 2011+4.0%
Q2 2011-0.1%
Q1 2010-1.2%
Q1 2011+1.3%
Q4 2008+0.3%
Q4 2010+0.3%
Q3 2010+2.8%
Q3 2009+2.8%
Q2 2010+4.9%
Q4 2009+4.9%
Q2 2009+4.9%

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