American Water Q3 2023 Earnings Report
Key Takeaways
American Water reported third quarter 2023 earnings of $1.66 per share, compared to $1.63 per share in 2022. The company affirmed its 2023 earnings per share guidance range of $4.72 to $4.82 on a weather-normalized basis and initiated 2024 earnings per share guidance range of $5.10 to $5.20.
Third quarter 2023 earnings were $1.66 per share, compared to $1.63 per share in 2022.
Quarter-to-date 2023 results reflect the favorable impact of an estimated $0.04 per share from warm, dry weather.
2023 earnings per share guidance range of $4.72 to $4.82 affirmed, on a weather-normalized basis.
Initiating 2024 earnings per share guidance range of $5.10 to $5.20 and 2024-2028 capital plan; affirming long-term targets, including long-term EPS and dividend per share compounded annual growth rates (CAGRs) of 7-9%
American Water
American Water
Forward Guidance
The company affirms its 2023 earnings per share guidance range of $4.72 to $4.82, on a weather-normalized basis and Initiating 2024 earnings per share guidance range of $5.10 to $5.20 and 2024-2028 capital plan; affirming long-term targets, including long-term EPS and dividend per share compounded annual growth rates (CAGRs) of 7-9%
Positive Outlook
- 2024 earnings guidance range of $5.10 to $5.20 per share established
- Long-term EPS CAGR of 7-9% remains unchanged
- Long-term rate base growth expectation of 8-9% (including acquisitions) remains unchanged
- Expectation of customer additions through acquisition at CAGR of 2% established
- Long-term dividend per share CAGR expectation of 7-9% remains unchanged
Challenges Ahead
- earnings forecasts are subject to numerous risks and uncertainties
- decisions to raise or lower customer rates
- changes in customer demand for, and patterns of use of, water and energy
- weather conditions and events, climate variability patterns, and natural disasters
- the outcome of litigation and similar governmental and regulatory proceedings, investigations or actions