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Dec 31, 2020

American Water Q4 2020 Earnings Report

Reported strong results with earnings of $0.80 per share for the quarter and announced 2021 guidance.

Key Takeaways

American Water reported Q4 2020 earnings of $0.80 per share, an increase of $0.26 per share compared to the same period in 2019. The company also announced 2021 diluted earnings per share guidance and long-term EPS growth targets.

Earnings were $0.80 per share, compared to $0.54 per share in the same period of 2019, an increase of $0.26 per share.

Results for the Regulated Business increased $0.01 per share and results from the Market-Based Business increased $0.22 per share.

Parent Company results improved $0.03 per share in the fourth quarter of 2020 as compared to the same period in 2019.

Consolidated results reflect a $0.02 per share benefit from depreciation not recorded as required by assets held for sale accounting in 2020 and the loss of $0.19 per share on the disposal of Keystone Clearwater Solutions in the fourth quarter of 2019.

Total Revenue
$923M
Previous year: $902M
+2.3%
EPS
$0.8
Previous year: $0.73
+9.6%
Gross Profit
$494M
Previous year: $490M
+0.8%
Cash and Equivalents
$547M
Previous year: $60M
+811.7%
Free Cash Flow
-$70M
Previous year: -$101M
-30.7%
Total Assets
$24.8B
Previous year: $22.7B
+9.2%

American Water

American Water

Forward Guidance

The company announced 2021 earnings guidance range of $4.18 to $4.28 per share and a long-term EPS growth expectation of 7-10% for 2021-2025.

Positive Outlook

  • 2021 earnings guidance range of $4.18 to $4.28 per share
  • Long-term EPS growth expectation of 7-10% for 2021-2025
  • 2021-2025 investment plan of $10.3-$10.5 billion
  • 2021-2025 rate base growth expectation of 7-8%
  • 2021-2025 dividend growth expectation at the high end of 7-10%