Stock Monitor: Companhia de Saneamento Basico do Estado de Sao Paulo Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 11, 2017 /

Active-Investors free earnings report on American Water Works Co., Inc. (NYSE: AWK) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=AWK. The Company posted its financial results on November 01, 2017, for the third quarter fiscal 2017. The Company's adjusted EPS was in-line with analysts' expectations. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (NYSE: SBS), which also belongs to the Utilities sector as the Company American Water Works. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=SBS

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, American Water Works most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=AWK

Earnings Highlights and Summary

For three months ended September 30, 2017, American Water Works' operating revenues increased 0.6% to $936 million from $930 million in Q3 FY16. The Company's operating revenue was below analysts' expectations of $987 million.

For the reported quarter, the Company's total operating expenses decreased 17.2% to $506 million from $611 million in Q3 FY16. The decrease was due to lower operation and maintenance expenses compared to last year.

During Q3 FY17, American Water Works' operating income increased 34.8% to $430 million from $319 million in the same period last year. During Q3 FY17, the Company's operating margin increased 1,160 basis points to 45.9% of revenue from 34.3% of revenue in the same period last year.

During Q3 FY17, American Water Works' earnings before tax (EBT) increased 39.9% to $340 million from $243 million in the same period last year. For the reported quarter, the Company's EBT margin increased 1,050 basis points to 36.6% of revenue from 26.1% of revenue in the third quarter of last year.

For the reported quarter, American Water Works' net income increased 37.2% to $203 million on a y-o-y basis from $148 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 36.1% to $1.13 on a y-o-y basis from $0.83 in the same period last year. For the reported quarter, the Company's adjusted diluted EPS increased 2.9% to $1.08 on a y-o-y basis from $1.05 in the third quarter of last year. The increase was due to growth in the Regulated Businesses driven mainly by infrastructure investment, acquisitions, and organic growth combined with growth in the Market-based Businesses mainly from the Homeowner Services Group. Adjusted diluted EPS was in-line with analysts' expectations of $1.08.

American Water Works' Segment Details

Regulated Businesses - During Q3 FY17, the Company's Regulated Businesses' net income increased 39.5% to $212 million from $152 million in the same period last year. For the reported quarter, the segment's adjusted net income increased 4.2% to $199 million from $191 million in Q3 FY16. The increase was due to a rise in demand driven by acquisition and organic growth.

Market-based Businesses - During Q3 FY17, the Market-based businesses adjusted net income increased 200% to $14 million from $7 million in the same period last year. The increase was due to growth in the Homeowner Services Group through customer growth and price increases for certain customers.

Balance Sheet

As on September 30, 2017, American Water Works' cash and cash equivalents increased 24% to $93 million from $75 million on December 31, 2016. For the reported quarter, the Company's total long-term debt increased 16% to $6.68 billion from $5.76 billion in Q4 FY16.

For the reported quarter, the Company's net accounts receivable increased 16% to $312 million from $269 million in Q4 FY16. For the reported quarter, the Company's accounts payable decreased 6.5% to $144 million from $154 million in the fourth quarter of 2016.

During Q3 FY17, the Company received a contract for ownership, operation, and maintenance of the water and wastewater systems at Wright-Patterson Air Force Base in Ohio.

Outlook

For FY2017, the Company expects diluted EPS to be in the range of $3.05-$3.11 and adjusted diluted EPS to be in the range of $3.00-$3.06.

Stock Performance Snapshot

December 08, 2017 - At Friday's closing bell, American Water Works' stock slightly advanced 0.48%, ending the trading session at $91.52.

Volume traded for the day: 610.30 thousand shares.

Stock performance in the last month ? up 1.42%; previous three-month period ? up 10.37%; past twelve-month period ? up 25.28%; and year-to-date ? up 26.48%

After last Friday's close, American Water Works' market cap was at $16.30 billion.

Price to Earnings (P/E) ratio was at 31.02.

The stock has a dividend yield of 1.81%.

The stock is part of the Utilities sector, categorized under the Water Utilities industry. This sector was up 0.3% at the end of the session.

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