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Dec 31, 2021
American Water Q4 2021 Earnings Report
Reported results in line with expectations, including gain on sale of Homeowner Services. Guidance for 2022 and long-term targets affirmed.
Key Takeaways
American Water reported Q4 2021 earnings of $3.55 per share, compared to $0.80 per share in 2020. Full year and fourth quarter 2021 results include a gain of $2.70 per share, which reflects the completion of the sale of HOS in December, reduced by the $0.19 per share contribution to the American Water Charitable Foundation from the proceeds on the sale.
2021 full-year results of $6.95 per share compared to 2020 results of $3.91 per share
Completed the sale of regulated subsidiaries in New York and Michigan in early Jan. 2022 and early Feb 2022, respectively
2022 diluted earnings per share guidance range of $4.39 to $4.49 affirmed
Long-term financial targets announced in Nov. 2021 affirmed, including long-term EPS growth target of 7-9%
American Water
American Water
American Water Revenue by Segment
Revenue by Segment
Regulated Businesses Revenue
CapyFin.com Forward Guidance
The Company affirms its 2022 earnings guidance range of $4.39 to $4.49 per share. The Company also affirms its long-term financial targets for the 2022-2026 period announced in Nov. 2021, including its long-term EPS compound annual growth rate target range of 7-9% and its long-term dividend growth expectation at the high end of a 7-10% range.
Positive Outlook
- 2022 earnings guidance range of $4.39 to $4.49 per share affirmed
- Long-term financial targets for the 2022-2026 period announced in Nov. 2021 affirmed
- Long-term EPS compound annual growth rate target range of 7-9%
- Long-term dividend growth expectation at the high end of a 7-10% range
- Continued ESG leadership as evidenced by recent exceptional ranking from Corporate Knights
Challenges Ahead
- Numerous risks and uncertainties
- Decisions of governmental and regulatory bodies
- Changes in customer demand
- Limitations on the availability of the Company’s water supplies
- Changes in laws, governmental regulations and policies