American Water Works Company Inc.
) reported fourth quarter earnings per share of 30 cents, lagging
the Zacks Consensus Estimate of 35 cents by 14.3% and the
year-ago earnings of 34 cents by 11.8%.
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The year-over-year decline in earnings was due to a $7 million
contribution made to the American Water Charitable Foundation,
increase in maintenance costs, expenses related to Hurricane
Sandy and the company's SAP implementation.
GAAP earnings for the quarter were 31 cents per share versus 37
cents in the prior-year quarter. The difference between operating
and GAAP numbers was due to a gain of 1 cent from discontinued
In 2012, American Water Works posted earnings of $2.11 per share,
21.9% higher than the 2011 level of $1.73.
The yearly results benefited from a warm, dry summer, which drove
Fourth quarter revenues of $680.9 million were up 6.4% year over
year from $639.7 million, but missed the Zacks Consensus Estimate
of $701.0 million. The year-over-year outperformance was
backed by favorable weather conditions and rate authorizations
awarded in recognition of the company's infrastructure
Full-year 2012 revenues came in at $2.87 billion, surpassing the
year-ago figure of $2.67 billion by 7.5%.
Highlights of the Release
Total operating expenses in the reported quarter increased 11% to
$513.9 million, with operating and maintenance expenses
increasing 10.5% year over year.
The rise in expenses led to a 5.8% decline in operating income of
The company has consistently paid dividends to its shareholders.
On Dec 6, 2012, the board of directors declared a quarterly
dividend of 25 cents per share and made an accelerated payment on
Dec 28, 2012, to allow shareholders to take advantage of the 2012
American Water Works' planned capital investment in 2012 was $929
million, $4 million higher than 2011 levels.
Interest expenses decreased 0.5% in 2012 to $310.8 million mainly
due to a decline in debt.
American Water Works expects its 2013 earnings per share to
better 2012 levels. The guidance ranges from $2.15 to $2.25 per
Other Company Release
American States Water Company
) reported earnings of 37 cents per share in the fourth quarter
of 2012, lagging the Zacks Consensus Estimate of 53 cents.
Aqua America, Inc
) announced fourth-quarter 2012 operating earnings of 47 cents
per share, 95.8% above the Zacks Consensus Estimate of 24 cents.
California Water Service Group
) announced fourth-quarter 2012 operating earnings of 12 cents
per share, 33.3% above the Zacks Consensus Estimate of 9 cents.
The warm and dry weather that prevailed during the year benefited
this water utility. We believe American Water Works' consistent
investment to improve and maintain its underground infrastructure
will allow the company to serve its customers better and enhance
the reliability of service.
Voorhees, New Jersey-based American Water Works Company was
founded in 1886. This water and wastewater utility caters to
approximately 15 million residents across the country and parts
of Canada. The company's market capitalization is $6.98 billion.
American Water Works Company currently has a Zacks Rank #3