American Water raises FY24 EPS view to $5.20-$5.30 from $5.10-$5.20

Consensus $5.16. The company affirms its long-term financial targets announced in Nov. 2023, including its long-term EPS and dividend growth rate targets of 7-9%. The company now expects its 2024 earnings per share guidance range to be $5.20 to $5.30, up from the EPS guidance range of $5.10 to $5.20 announced in Nov. 2023, as the company will receive increased interest income resulting from the amendment to the terms of the secured seller note receivable related to the sale of the former Homeowner Services Group (“HOS”). The increased interest income is expected to approximate $0.10 per share per year through the note’s maturity date of December 9, 2026, which is unchanged from the original note term.