American Water Works (AWK) Q2 Earnings Miss Estimates

Core Insights - American Water Works (AWK) reported quarterly earnings of $1.48 per share, slightly missing the Zacks Consensus Estimate of $1.49 per share, but showing an increase from $1.42 per share a year ago, resulting in an earnings surprise of -0.67% [1] - The company achieved revenues of $1.28 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 10.54% and up from $1.15 billion year-over-year [2] - American Water Works has outperformed the S&P 500, with shares increasing by approximately 13.2% since the beginning of the year compared to the S&P 500's gain of 8.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.89 on revenues of $1.32 billion, and for the current fiscal year, it is $5.71 on revenues of $4.88 billion [7] - The estimate revisions trend for American Water Works was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Utility - Water Supply industry, to which American Water Works belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]