Core Viewpoint - The Zacks Utility - Water Supply industry is essential for providing clean drinking water and efficient sewer services, with a focus on infrastructure upgrades to meet growing demand and address aging pipelines [1][2][3]. Industry Overview - The industry consists of companies providing drinking water and wastewater services across a vast network of nearly 2.2 million miles of aging pipelines, requiring continuous investment in infrastructure [3]. - Water utilities benefit from lower interest rates, which reduce financing costs and support infrastructure investments [4]. - The U.S. water industry is fragmented, with over 50,000 community water systems and 14,000 wastewater treatment facilities, leading to inefficiencies that consolidation could address [5]. Investment Needs - The U.S. water infrastructure is deteriorating, with an estimated $1.25 trillion needed over the next 20 years for upgrades, while the Bipartisan Infrastructure Law has committed $50 billion for improvements [6]. - The American Society of Civil Engineers rates U.S. drinking water infrastructure at C- and wastewater systems at D+, highlighting the urgent need for upgrades [6]. Market Performance - The Zacks Utility Water Supply industry has underperformed compared to the Zacks S&P 500 composite and the broader utilities sector over the past 12 months, gaining 6.1% versus 12.5% for the sector and 12.4% for the S&P 500 [11]. - The industry is currently trading at a trailing 12-month EV/EBITDA of 15.89X, lower than the S&P 500's 17.94X and the sector's 15.92X [14]. Earnings Outlook - The Zacks Utility Water Supply industry has a positive earnings outlook, with an aggregate earnings estimate of $2.27 indicating year-over-year growth of 7.1% [9]. - The Zacks Industry Rank 97 places the industry in the top 40% of over 243 Zacks industries, suggesting bullish prospects for the near term [7][8]. Company Highlights - **American States Water Company (AWR)**: Plans to invest $180-$210 million in 2025 for infrastructure upgrades, with a long-term earnings growth rate of 5.65% and a current dividend yield of 2.75% [18][19]. - **American Water Works Company (AWK)**: Aims to invest $3.3 billion in 2025 and $19-$20 billion from 2026 to 2030 for infrastructure strengthening, with a long-term earnings growth rate of 6.77% and a current dividend yield of 2.49% [23][24]. - **Essential Utilities Inc. (WTRG)**: Plans to invest $7.8 billion from 2025 to 2029 for pipeline rehabilitation, with a current dividend yield of 3.42% [27][28].

Core Viewpoint - American States Water (AWR) is focusing on infrastructure upgrades to ensure reliable services for its growing customer base, supported by long-term contracts with military bases, making it a solid investment in the Zacks Utility - Water Supply industry [1][3]. Growth Outlook - The Zacks Consensus Estimate for AWR's 2025 earnings per share (EPS) has increased by 1.22% to $3.32 over the past 60 days [3]. - The estimated revenue for 2025 is $629 million, indicating a growth of 5.63% from the 2024 reported figure [3]. - AWR's long-term earnings growth rate is projected at 5.65% [3]. - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of 3.63% [3]. Return to Shareholders - AWR has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of $0.50 per share, leading to an annualized dividend of $2.02 [4]. - The current dividend yield stands at 2.68%, outperforming the Zacks S&P 500 composite average of 1.51% [4]. Infrastructure Investment - AWR is planning to invest $573.1 million from 2025 to 2027 to enhance its infrastructure and operations [6]. - New rate filings and subsequent increases are expected to help recover the investment costs and support ongoing infrastructure upgrades [6]. Debt Structure - AWR's total debt to capital ratio is 47.54%, which is better than the industry average of 60.90% [7]. - The times interest earned (TIE) ratio is 4.5, indicating the company can comfortably meet its interest payment obligations [7]. Stock Performance - Over the past month, AWR's shares have decreased by 0.3%, while the industry has seen a decline of 1.2% [8].

Core Insights - Global Water Resources, Inc. (GWRS) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.09 per share, and down from $0.12 per share a year ago, representing an earnings surprise of -22.22% [1] - The company posted revenues of $15.52 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.77%, and up from $14.32 million year-over-year [2] - The stock has underperformed the market, losing about 12.4% since the beginning of the year compared to the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $13.9 million, and for the current fiscal year, it is $0.22 on revenues of $55.7 million [7] - The estimate revisions trend for Global Water Resources was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Utility - Water Supply industry, to which Global Water Resources belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - York Water (YORW) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and showing an increase from $0.41 per share a year ago, resulting in an earnings surprise of +13.16% [1] - The company posted revenues of $20.36 million for the quarter ended September 2025, which was 3.04% below the Zacks Consensus Estimate, but an increase from $19.72 million year-over-year [2] - York Water shares have underperformed the market, losing about 0.9% since the beginning of the year compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $20 million, and for the current fiscal year, it is $1.35 on revenues of $78 million [7] - The estimate revisions trend for York Water was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Utility - Water Supply industry, to which York Water belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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]

American States Water (AWR) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.95%. A quarter ago, it was expected that this water and electric utility would post earnings of $0.92 per share when it actually produced earnings of $0.87, delivering a surprise of -5.43%.Over the last fou ...

Core Insights - Essential Utilities (WTRG) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and up from $0.25 per share a year ago, representing an earnings surprise of +22.22% [1] - The company posted revenues of $476.97 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.06%, but up from $435.26 million year-over-year [2] - Essential Utilities has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $598.76 million, and for the current fiscal year, it is $2.10 on revenues of $2.37 billion [7] - The estimate revisions trend for Essential Utilities was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Market Performance - Essential Utilities shares have increased by approximately 4.9% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The outlook for the Utility - Water Supply industry, where Essential Utilities operates, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures ...

Core Insights - Artesian Resources (ARTNA) reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, and showing an increase from $0.66 per share a year ago, resulting in an earnings surprise of +3.03% [1] - The company achieved revenues of $30.49 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.64% and up from $29.14 million year-over-year [2] - Artesian Resources has outperformed consensus EPS estimates three times in the last four quarters [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $28 million, while for the current fiscal year, it is $2.16 on revenues of $112 million [7] Industry Context - The Utility - Water Supply industry, to which Artesian Resources belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] Stock Performance - Artesian Resources shares have increased by approximately 2.7% since the beginning of the year, in contrast to the S&P 500's gain of 17.2% [3] - The estimate revisions trend for Artesian Resources was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Insights - California Water Service Group (CWT) reported quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.20 per share, representing an earnings surprise of -14.17% [1] - The company posted revenues of $311.24 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.36% and showing an increase from $299.56 million year-over-year [2] - The stock has added about 4.7% since the beginning of the year, underperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $235.2 million, and for the current fiscal year, it is $2.41 on revenues of $1.01 billion [7] - The estimate revisions trend for California Water Service Group 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 is currently in the top 17% of over 250 Zacks industries, suggesting a positive 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]

Core Insights - American Water Works (AWK) reported quarterly earnings of $1.94 per share, exceeding the Zacks Consensus Estimate of $1.90 per share, and up from $1.80 per share a year ago, representing an earnings surprise of +2.11% [1] - The company generated revenues of $1.45 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.61%, compared to $1.32 billion in the same quarter last year [2] - The stock has increased approximately 8.3% since the beginning of the year, while the S&P 500 has gained 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $1.18 billion, and for the current fiscal year, it is $5.72 on revenues of $4.87 billion [7] - The estimate revisions trend for American Water Works was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Utility - Water Supply industry, to which American Water Works belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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]