Here's What to Expect From American Water Works' Next Earnings Report

Camden, New Jersey-based American Water Works Company, Inc. (AWK) provides water and wastewater services to residential, commercial, and industrial customers. Valued at a market cap of $25.6 billion, the company is scheduled to announce its fiscal Q4 earnings for 2025 after the market closes on Wednesday, Feb. 18.

Ahead of this event, analysts expect this wastewater utility company to report a profit of $1.28 per share, up 4.9% from $1.22 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. In Q3, its EPS of $1.94 topped the consensus estimates by 2.1%.

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For the current fiscal year, ending in December, analysts expect AWK to report a profit of $5.74 per share, up 6.5% from $5.39 per share in fiscal 2024. Furthermore, its EPS is expected to grow 6.5% year-over-year to $6.11 in fiscal 2026.

AWK has gained 3.7% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 13.7% return and the State Street Utilities Select Sector SPDR ETF’s (XLU) 7.5% uptick over the same time period.

Despite reporting better-than-expected Q3 earnings results on Oct. 29, shares of AWK plunged 2.6% in the following trading session. The company’s operating revenue increased 9.7% year-over-year to $1.5 billion, surpassing consensus estimates by a notable margin of 9.8%. Meanwhile, its EPS came in at $1.94, up 7.8% from the year-ago quarter and 2.1% ahead of analyst estimates. However, investors might be concerned about rising costs and leverage, with operating expenses climbing 7.3% from the same period last year to $837 million and total long-term debt increasing 4% to $13 billion.

Wall Street analysts are cautious about AWK’s stock, with an overall "Hold" rating. Among 14 analysts covering the stock, three recommend "Strong Buy," 10 advise "Hold,” and one indicates a "Strong Sell” rating. The mean price target for AWK is $143.09, indicating a 9.2% potential upside from the current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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