NYSE$AWK

American Water Works Co Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported results in line with expectations, including gain on sale of Homeowner Services. Guidance for 2022 and long-term targets affirmed.

American Water reported Q4 2021 earnings of $3.55 per share, compared to $0.80 per share in 2020. Full year and fourth quarter 2021 results include a gain of $2.70 per share, which reflects the completion of the sale of HOS in December, reduced by the $0.19 per share contribution to the American Water Charitable Foundation from the proceeds on the sale.

  • 2021 full-year results of $6.95 per share compared to 2020 results of $3.91 per share
  • Completed the sale of regulated subsidiaries in New York and Michigan in early Jan. 2022 and early Feb 2022, respectively
  • 2022 diluted earnings per share guidance range of $4.39 to $4.49 affirmed
  • Long-term financial targets announced in Nov. 2021 affirmed, including long-term EPS growth target of 7-9%

Headline financials

Total Revenue

$951M

Previous: $923M+3.0%
EPS (adj)

$0.85

Previous: $0.80+6.2%
Capital Expenditures

$559M

Previous: $508M+10.0%
Free Cash Flow

-$147M

Previous: -$70M-110.0%
Net Income

$645M

Previous: $145M+344.8%
Operating Income

$220M

Previous: $263M-16.3%
Gross Profit

$460M

Previous: $494M-6.9%
Cash & Equivalents

$116M

Previous: $547M-78.8%
Total Assets

$26.1B

Previous: $24.8B+5.3%

Revenue & EPS history

American Water · Revenue · Quarterly

$951M

Q4 2021+3%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

American Water · $3.38B total across 1 segment · Q4 2021

  • Regulated Businesses
    $3.38B

Forward guidance

The Company affirms its 2022 earnings guidance range of $4.39 to $4.49 per share. The Company also affirms its long-term financial targets for the 2022-2026 period announced in Nov. 2021, including its long-term EPS compound annual growth rate target range of 7-9% and its long-term dividend growth expectation at the high end of a 7-10% range.

Tailwinds

  • 2022 earnings guidance range of $4.39 to $4.49 per share affirmed
  • Long-term financial targets for the 2022-2026 period announced in Nov. 2021 affirmed
  • Long-term EPS compound annual growth rate target range of 7-9%
  • Long-term dividend growth expectation at the high end of a 7-10% range
  • Continued ESG leadership as evidenced by recent exceptional ranking from Corporate Knights

Headwinds

  • Numerous risks and uncertainties
  • Decisions of governmental and regulatory bodies
  • Changes in customer demand
  • Limitations on the availability of the Company’s water supplies
  • Changes in laws, governmental regulations and policies

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 Q4 2021

Historical avgQ4 2021

+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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