American Water to Report Q3 Earnings: What's in Store for the Stock?

American Water Works Company AWK is scheduled to release third-quarter 2025 results on Oct. 29, after market close. The company delivered a negative earnings surprise of 0.67% in the last reported quarter.
 
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors That Might Have Impacted AWK's Q3 Performance

American Water Works generates nearly 100% of its net income from regulated operations. The new rates, effective during the third quarter and implemented from Jan. 1, 2025, are expected to have contributed positively to the quarterly performance.

American Water Works’ earnings are expected to have benefited from ongoing infrastructure improvements due to capital investment and efficient cost management strategies. The third-quarter earnings are expected to have benefited from incremental interest income.

AWK completed six acquisitions in three states as of June 30, 2025. The company completed a few acquisitions in the third quarter. Synergies from the completed acquisitions are likely to have had a positive impact on third-quarter earnings.

Q3 Expectations for AWK

The Zacks Consensus Estimate for earnings is pegged at $1.89 per share, implying a year-over-year increase of 5%.

The consensus estimate for revenues is pinned at $1.32 billion, indicating a decline of 0.19% from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for American Water Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

American Water Works Company, Inc. Price and EPS Surprise

American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote

AWK’s Earnings ESP: The company has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AWK’s Zacks Rank: Currently, American Water Works carries a Zacks Rank #4 (Sell). 

Stocks to Consider

Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.

Duke Energy DUK is likely to come up with an earnings beat when it reports third-quarter results on Nov. 7. It has an Earnings ESP of +1.65% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

DUK’s long-term (three to five years) earnings growth rate is 6.43%. The Zacks Consensus Estimate for third-quarter earnings per share is pinned at $1.73, which implies a year-over-year increase of 6.79%.

ONE Gas Inc. OGS is likely to come up with an earnings beat when it reports third-quarter results on Nov. 3. It has an Earnings ESP of +0.38% and a Zacks Rank #2 at present.

OGS’ long-term earnings growth rate is 5.81%. The Zacks Consensus Estimate for third-quarter earnings is pinned at 44 cents per share, which implies a year-over-year increase of 29.4%.

Atmos Energy ATO is likely to come up with an earnings beat when it reports fiscal fourth-quarter results on Nov. 5. It has an Earnings ESP of +4.84% and a Zacks Rank #2 at present.

ATO’s long-term earnings growth rate is 7.49%. The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pinned at 96 cents per share, which implies a year-over-year increase of 11.6%.
 

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This article originally published on Zacks Investment Research (zacks.com).

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