American Water Q4 Earnings & Revenues Beat Estimates, Customers Added

Core Insights - American Water Works Company (AWK) reported fourth-quarter 2024 operating earnings per share (EPS) of $1.22, exceeding the Zacks Consensus Estimate of $1.13 by 7.9% and showing a year-over-year increase of 38.6% from $0.88 [1][2] - Total revenues for the fourth quarter reached $1.2 billion, surpassing the Zacks Consensus Estimate of $1.08 billion by 11.4% and increasing 16.4% from $1.03 billion in the previous year [3] - The company continues to expand operations, adding 90,000 customers in 2024, with 69,500 from 13 acquisitions, and has 17 pending acquisitions expected to add another 24,200 customers [6] Financial Performance - Total operating expenses for Q4 were $801 million, a 9.3% increase from $733 million in the previous year, primarily due to higher operating and maintenance costs [5] - Operating income for the fourth quarter was $400 million, up 33.8% from $299 million year-over-year, exceeding predictions [5] - Net income for Q4 was $239 million, compared to $171 million in the same quarter last year [7] Revenue Breakdown - Regulated businesses' net revenues in 2024 were $4.3 billion, reflecting a 9.6% year-over-year increase [4] - Other net revenues in 2024 amounted to $380 million, up from $310 million in 2023 [4] Long-Term Guidance - The company reiterated its 2025 EPS guidance of $5.65-$5.75, aligning with the Zacks Consensus Estimate of $5.70 [10] - Long-term earnings and dividend growth are projected in the range of 7-9%, with planned investments of nearly $3.3 billion in 2025 [10] - Capital expenditure for 2025-2029 is expected to be between $17-$18 billion, and for 2025-2034, it is projected to be in the range of $40-$42 billion [11]