On the day before the report, the company American Water Works
American Water Works Company Inc. (AWK), a utility company that deals with water supply and sanitation, will report for the second quarter after trading ends on July 27. The company is likely to make a little less money, but this doesn’t mean there are significant problems. Wall Street thinks sales will drop by about 3% from last year to $973 million is valid for several good reasons. First, some places where American Water Works is present had a dry summer last year, which caused more people to use water.
Since this factor can only change over time, Wall Street has taken it out of consideration this year. Still, it shows that American Water Works can make money from the effects of climate change. Another thing affecting the company’s revenue this quarter is that it is not as present in as many places as last year. Remember that American Water Works sold a business that served private homes and utilities in two states regulated by the government (New York and Michigan). So, you can now find the company in 14 states. Even though analysts expect sales to go down, they expect profits to go up by 3 percent from one year to the next.
When American Water Works talked about how the first quarter went, it confirmed its earlier prediction for all of 2022. It that the company’s income will stay stable and predictable. Management thinks the company will earn between $4.39 and $4.49 per share in 2022. For the five years from 2019 to 2026, predicted that earnings per share will grow by 7 to 9 percent each year. Similarly, the average growth of dividends in 2026 will be at the top end of the range of 7% to 10%.
