American Water to Post Q4 Earnings: What to Expect From the Stock?

Core Viewpoint - American Water Works Company (AWK) is set to release its fourth-quarter 2025 results on February 18, with an earnings surprise of 2.11% in the previous quarter [1] Group 1: Q4 Expectations - The Zacks Consensus Estimate for AWK's earnings is $1.28 per share, reflecting a year-over-year increase of 4.92% [2] - The consensus estimate for revenues stands at $1.22 billion, indicating a growth of 1.89% compared to the same quarter last year [2] Group 2: Factors Influencing Q4 Performance - AWK's fourth-quarter earnings are expected to benefit from new rates implemented on January 1, 2025, which are projected to increase annual revenues by $275 million [3] - Systematic capital investment for infrastructure upgrades and efficient cost management strategies have helped keep utility rates low, attracting new customers and contributing positively to quarterly performance [4] - The company continues to expand its customer base and service area through acquisitions, which are anticipated to have positively impacted fourth-quarter results, along with synergies from completed acquisitions [5] Group 3: Earnings Prediction - The current model does not predict an earnings beat for AWK, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6][7]