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American Water Works Reports Mixed Q2 Results
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American Water Works Reports Mixed Q2 Results

High-quality water and wastewater services provider American Water Works Company, Inc. (AWK) has reported mixed results for the quarter ended June 30, 2021.

Quarterly operating revenues grew 7.3% year-over-year from $931 million to $999 million, marginally below the Street’s estimate of $1.01 billion.

Earnings per share (EPS) stood at $1.14, up 17.5% from last year. The growth in EPS was primarily driven by continued growth in the Regulated Businesses from infrastructure investment, acquisitions and organic growth. Further, it topped the consensus estimate $1.09.

The company has also affirmed its guidance for FY 2021. It expects EPS to be in the range of $4.18-$4.28 compared to the consensus estimate of $4.24.

The CEO of American Water, Walter Lynch, said, “In the first six months in 2021, we invested $782 million with the majority dedicated to needed infrastructure improvements to better serve our customers. We added approximately 11,200 customer connections to date through closed acquisitions and organic growth. We also look forward to welcoming an additional 86,900 customer connections through pending acquisitions.” (See American Water stock chart on TipRanks)

Recently, RBC Capital analyst Shelby Tucker reiterated a Buy rating on the stock with a price target of $175. The analyst’s price target implies upside potential of 1.6% from current levels.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 2 Buys and 4 Holds. The average American Water price target of $163.40 implies 5.1% downside potential from current levels.

American Water scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the market expectations. Shares have gained about 17.1% over the past year.

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