American Water Works (NYSE:AWK) Announces Earnings Results, Misses Expectations By $0.04 EPS

American Water Works (NYSE:AWK) issued its earnings results on Wednesday. The utilities provider reported $2.00 EPS for the quarter, missing analysts’ consensus estimates of $2.04 by ($0.04), Zacks reports. American Water Works had a net margin of 21.35% and a return on equity of 10.20%. The firm had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same quarter in the prior year, the company earned $1.94 EPS. American Water Works’s quarterly revenue was up 4.1% on a year-over-year basis.

American Water Works Price Performance

Shares of American Water Works stock traded up $1.35 during trading on Thursday, hitting $141.14. 1,033,392 shares of the company were exchanged, compared to its average volume of 1,991,599. American Water Works has a fifty-two week low of $120.57 and a fifty-two week high of $144.14. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.20. The firm has a 50 day moving average price of $135.35 and a 200 day moving average price of $132.30. The stock has a market capitalization of $28.05 billion, a price-to-earnings ratio of 24.43, a P/E/G ratio of 2.91 and a beta of 0.58.

American Water Works Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Thursday, November 12th will be given a dividend of $0.8950 per share. The ex-dividend date is Thursday, November 12th. This represents a $3.58 dividend on an annualized basis and a yield of 2.5%. American Water Works’s payout ratio is presently 62.05%.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. UBS Group cut their price objective on shares of American Water Works from $162.00 to $153.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. Wall Street Zen upgraded shares of American Water Works from a “strong sell” rating to a “sell” rating in a research report on Monday, August 3rd. Weiss Ratings raised shares of American Water Works from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 2nd. Bank of America reaffirmed a “neutral” rating on shares of American Water Works in a research report on Thursday, July 16th. Finally, Barclays decreased their price objective on American Water Works from $130.00 to $127.00 and set an “underweight” rating for the company in a report on Monday, October 19th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $136.75.

Trending Headlines about American Water Works

Here are the key news stories impacting American Water Works this week:

• Positive Sentiment: Management narrowed its 2026 adjusted EPS guidance to $6.07–$6.12 from $6.02–$6.12, putting the midpoint near the top of the previous range. It also initiated 2027 EPS guidance of $6.53–$6.63, implying approximately 8% growth. American Water third-quarter results
• Positive Sentiment: Third-quarter adjusted EPS rose to $2.00 from $1.89 a year earlier, while year-to-date adjusted EPS increased to $4.63 from $4.40. The company also affirmed its long-term targets and said its $3.7 billion capital investment plan remains on track. American Water third-quarter results
• Positive Sentiment: American Water declared its quarterly dividend of $0.895 per share, or $3.58 annualized, supporting the stock’s income appeal with a yield of about 2.6%. American Water dividend announcement
• Neutral Sentiment: Progress continues on the proposed merger with Essential Utilities, with approvals or settlements reached in three states. The transaction could expand AWK’s scale, but it remains subject to additional regulatory steps.
• Negative Sentiment: Third-quarter adjusted EPS of $2.00 fell short of estimates ranging from $2.04 to $2.11, while revenue of $1.51 billion also missed expectations of roughly $1.58 billion. Reports cited weather and cost pressures as factors weighing on results. American Water earnings estimate miss

About American Water Works

American Water Works Company, Inc is a public water and wastewater utility that provides essential services to residential, commercial, industrial and institutional customers. Through its regulated businesses, the company supplies drinking water, collects and treats wastewater, and manages related infrastructure, including treatment plants, pipelines, storage facilities and customer service systems.

Founded in 1886, American Water has grown into one of the largest water and wastewater service providers in the United States.