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Sep 30, 2020
American Water Q3 2020 Earnings Report
Reported a strong third quarter with earnings up 9.8% per share compared to 2019 results.
Key Takeaways
American Water reported a strong third quarter with earnings per share up 9.8% compared to 2019. The company invested $450 million during the quarter, primarily in Regulated Businesses, and added over 47,000 customers through acquisitions and organic growth. They were also awarded a water and wastewater contract with Joint Base Lewis-McChord.
Third quarter 2020 diluted earnings were $1.46 per share, compared to $1.33 per share in 2019, a 9.8% increase.
Quarter results reflect an estimated favorable impact of $0.06 per share from warmer and drier weather in 2020, compared to 2019
Quarter results reflect an estimated favorable impact of $0.03 per share from changes in customer revenue and impacts on the Homeowner Services Group resulting from the COVID-19 pandemic
Quarter results also reflect a favorable impact from depreciation not recorded as required by assets held for sale accounting of $0.01 per share
Forward Guidance
The Company now expects its 2020 earnings to be in the range of $3.87 per share to $3.93 per share, up from the previous guidance range of $3.79 per share to $3.89 per share.
Positive Outlook
- Guidance range reflects the favorable benefit of weather year-to-date and assumes normal weather for the remainder of the year.
- Guidance includes an estimated $0.06 per share for depreciation not recorded as required by assets held for sale accounting.
- Increased earnings guidance range to $3.87 to $3.93 per share.
- Company continues to grow business through consistent execution of strategies.
- Awarded water and wastewater contract with Joint Base Lewis-McChord.
Challenges Ahead
- Guidance includes an estimated $0.03 per share to $0.06 per share unfavorable impact from the COVID-19 pandemic.
- Full year estimated impact of COVID-19 is highly dependent on the projected impact of a number of unknown factors.
- Length and severity of any impact on the demand for services.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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