NYSE$AWK

American Water Works Co Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported strong results and increased 2024 EPS guidance due to note restructuring.

American Water reported Q4 2023 earnings of $0.88 per share, compared to $0.81 per share in 2022. The company invested a record $2.7 billion in regulated operations and completed 23 acquisitions across eight states in 2023. 2024 earnings per share guidance range increased to $5.20 to $5.30 from $5.10 to $5.20 as a result of interest income on a legacy note restructuring

  • Q4 2023 earnings per share were $0.88, compared to $0.81 per share in 2022.
  • Full year 2023 earnings were $4.90 per share, compared to $4.51 per share in 2022.
  • Invested $2.7 billion in capital in 2023, increasing rate base by 10.7% year-over-year.
  • 2024 earnings per share guidance range increased to $5.20 to $5.30 from $5.10 to $5.20 as a result of interest income on a legacy note restructuring.

Headline financials

Total Revenue

$1.03B

Previous: $931M+10.8%
EPS (adj)

$0.88

Previous: $0.81+8.6%
Capital Expenditures

$796M

Previous: $700M+13.7%
Net Income

$171M

Previous: $147M+16.3%
Operating Income

$299M

Previous: $261M+14.6%
Gross Profit

$560M

Previous: $498M+12.4%

Revenue & EPS history

American Water · Revenue · Quarterly

$1.03B

Q4 2023+10.8%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

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

  • Regulated Businesses
    $3.59B

Forward guidance

The company expects its 2024 earnings per share guidance range to be $5.20 to $5.30, up from the EPS guidance range of $5.10 to $5.20 announced in Nov. 2023, as the company will receive increased interest income resulting from the amendment to the terms of the secured seller note receivable related to the sale of the former Homeowner Services Group (“HOS”).

Tailwinds

  • Increased interest income from the amended secured seller note.
  • Successful completion of the extension of agreements with the New York City Water Board.
  • Increase in the principal amount of the secured seller note from $720 million to $795 million.
  • Increase in the interest rate payable in cash on the secured seller note from 7.00% per year to 10.00% per year until maturity.
  • Affirms long-term growth targets.

Headwinds

  • Earnings forecasts are subject to numerous risks and uncertainties.
  • Decisions of governmental and regulatory bodies.
  • Changes in customer demand for water and energy.
  • Limitations on the availability of the company’s water supplies.
  • Weather conditions and events, climate variability patterns, and natural disasters.

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 2023

Historical avgQ4 2023

+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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