American Water to Post Q4 Earnings: What to Expect From the Stock?

American Water Works Company AWK is scheduled to release fourth-quarter 2025 results on Feb. 18, after market close. The company delivered an earnings surprise of 2.11% in the last reported quarter.
 
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Q4 Expectations for AWK

The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, implying a year-over-year increase of 4.92%.

The consensus estimate for revenues is pinned at $1.22 billion, indicating growth of 1.89% from the year-ago reported number.

Factors That Might Have Impacted AWK's Q4 Performance

American Water Works' fourth-quarter earnings are likely to have benefited from the new rates that were implemented on Jan. 1, 2025, which increased the yearly revenues by $275 million.

AWK, with systematic capital investment for continuous upgradation of infrastructure and efficient cost management strategies, keeps the utility rates low and attracts new customers. New customers create fresh demand, which is likely to have contributed positively to the quarterly performance.

The company continues to expand its customer base and service area through acquisitions, which are expected to have contributed positively to the fourth quarter’s performance. Synergies from the completed acquisition are also expected to have boosted fourth-quarter performance.

What Our Quantitative Model Predicts for AWK

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.

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 #3. You can see the complete list of today's Zacks #1 Rank stocks here.

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.

The AES Corporation AES is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 27. It has an Earnings ESP of +0.54% and a Zacks Rank #2 at present.

AES’ long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at 62 cents per share, which implies a year-over-year increase of 14.81%.

DTE Energy DTE is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 17. It has an Earnings ESP of +0.31 and a Zacks Rank #3 at present. 

DTE’s long-term earnings growth rate is 7.06%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at $1.52 per share, which implies a year-over-year increase of 0.66%.

Pinnacle West Capital PNW is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 25. It has an Earnings ESP of +7.94% and a Zacks Rank #3 at present. 

PNW’s long-term earnings growth rate is 3.56%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at 5 cents per share, which implies a year-over-year increase of 183.33%.

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

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