As you might know, American Water Works Company, Inc. (NYSE:AWK) recently reported its quarterly numbers. It was a pretty mixed result, with revenues beating expectations to hit US$1.3b. Statutory earnings fell 2.9% short of analyst forecasts, reaching US$1.80 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for American Water Works Company from eleven analysts is for revenues of US$4.81b in 2025. If met, it would imply a modest 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 13% to US$5.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.79b and earnings per share (EPS) of US$5.67 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$144. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values American Water Works Company at US$164 per share, while the most bearish prices it at US$124. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the American Water Works Company's past performance and to peers in the same industry. The analysts are definitely expecting American Water Works Company's growth to accelerate, with the forecast 5.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.6% annually. So it's clear that despite the acceleration in growth, American Water Works Company is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that American Water Works Company's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$144, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for American Water Works Company going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for American Water Works Company (1 can't be ignored) you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
