American States Water Q1 Earnings In Line With Estimates, Sales Up Y/Y

Core Insights - American States Water Company (AWR) reported first-quarter 2025 operating earnings per share (EPS) of 70 cents, matching the Zacks Consensus Estimate and increasing from 62 cents in the same quarter last year [1] - Total revenues for AWR reached $148 million, exceeding the Zacks Consensus Estimate of $142 million by 4.2% and reflecting a 9.4% increase from $135.3 million in the prior-year period [1] Financial Performance - Operating expenses totaled $102.5 million, up 6.4% from $96.3 million in the year-ago quarter, driven by higher water purchases, increased administrative costs, and maintenance expenses [2] - Operating income was reported at $45.5 million, a 16.7% increase from $39 million in the corresponding period of 2024 [2] - Interest expenses decreased to $12.1 million, down 6.2% year over year, while interest income slightly declined to $2.013 million from $2.07 million in the previous year [3] Segment Performance - Earnings from the Water segment were 52 cents per share, an 8.3% increase from 48 cents a year ago, attributed to new water rates set by the California Public Utilities Commission (CPUC) for the 2025-2027 period [4] - EPS from the Electric segment was 7 cents, up 2 cents from the previous year, due to revenue increases from electric rate hikes implemented in 2025 following CPUC decisions [5] - EPS from the Contracted Services segment remained flat at 13 cents year over year, while AWR (Parent) reported a loss of 2 cents per share, an improvement from a loss of 3 cents in the year-ago quarter [5] Financial Position - As of March 31, 2025, AWR's cash and cash equivalents were $21.2 million, down from $26.7 million as of December 31, 2024 [6] - Long-term debt increased to $690.2 million from $640.4 million as of December 31, 2024 [6] - Cash provided by operating activities in Q1 2025 totaled $45.1 million, slightly down from $45.8 million in the year-ago quarter [6] Market Position - AWR currently holds a Zacks Rank of 4 (Sell), indicating a less favorable market position compared to other stocks [7]