American Water Works Company, Inc.
) reported third-quarter 2013 earnings from continuing operations
of 84 cents per share, missing the Zacks Consensus Estimate by a
penny. Quarterly earnings were 2.3% lower than the year-ago
The disappointing performance was primarily due to
lower-than-normal weather conditions, and an increase in
depreciation expenses as well as general taxes.
The company's operating revenues were $829.2 million, missing the
Zacks Consensus Estimate by $33.8 million. On a year-over-year
basis, revenues edged down 0.3% from $831.8 million.
Quarterly revenues decreased primarily due to a 1.0% decline in
segment's sales as customer demand remained low in a much cooler
summer. The negatives were partially offset by a 5.5%
year-over-year jump in sales at the
segment on the back of increasing contracts at Homeowner
In the quarter under review, American Water Works Company's total
operating expenses edged up 0.2% year over year to $505.3 million
due to higher depreciation expenses and a rise in general taxes.
The company's operating margin decreased marginally by 30 basis
points from the year-ago level to 39.1%.
Net interest expenses inched up 1% year over year to $77.4
million due to a rise in the commercial paper outstanding.
As of Sep 30, 2013, American Water Works Company's cash and cash
equivalents were $32.5 million versus $24.4 million as of Dec 31,
Long-term debt as of Sep 30, 2013 was $389.4 million compared
with $270 million as of Dec 31, 2012.
AMER WATER WORK (AWK): Free Stock Analysis
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SJW CORP (SJW): Free Stock Analysis Report
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During the first nine months of 2013, the company's net cash
flows provided by operations were $688.7 million versus $735
million in the prior-year comparable period.
American Water Works Company invested $665.3 million in capital
expenditure during the first nine months of 2013.
The board of directors announced that the company will distribute
a quarterly cash dividend of 28 cents per common share on Dec 2,
2013, to shareholders of record as of Nov 15, 2013.
Less favorable weather conditions propelled the company to narrow
its full-year 2013 adjusted earnings guidance to $2.17 - $2.22
per share from the earlier projection of $2.15 - $2.25 per share.
In 2013, American Water Works Company intends to invest roughly
$950 million in construction activities.
Other Company Releases
American States Water Company
) reported third-quarter 2013 pro forma earnings of 53 cents per
share, beating the Zacks Consensus Estimate of 47 cents by 12.8%.
) third quarter 2013 operating earnings per share of 44 cents
missed the Zacks Consensus Estimate by 8 cents.
California Water Service Group
) announced third-quarter 2013 operating earnings of 61 cents per
share, surpassing the Zacks Consensus Estimate by 9 cents.
Despite missing both the estimates, we appreciate the company's
efforts to control costs and other measures taken to improve its
American Water Works Company is currently expanding its
operations through an inorganic growth strategy besides improving
its existing infrastructure. To date, the company has completed
acquisitions of eight water and four wastewater systems.
Recently, the company's Homeowner Services business expanded its
service offerings into Florida and Washington, D.C. These
initiatives will enable the company to serve more number of
During the quarter, the company received new rate approvals in
West Virginia and Kentucky, which will fetch additional
annualized revenues of $8.5 million and $6.9 million,
respectively. This kind of government support will encourage the
company to invest more in the improvement of utility
infrastructure, which in turn will subsequently improve
American Water Works Company currently has a Zacks Rank #3