Mind-blowing Stock: American States Water Company (NYSE: AWR)

On 26 Nov 2019, American States Water Company (NYSE: AWR) changed 1.37% to recent value of $86.07. The stock transacted 239203 shares during most recent day however it has an average volume of 257.94K shares. It spotted trading -10.34% off 52-week high price. On the other end, the stock has been noted 36.29% away from the low price over the last 52-weeks.

American States Water Company (AWR) recently stated basic and fully diluted earnings per share of $0.76 for the third quarter ended September 30, 2019, as contrast to basic and fully diluted earnings per share of $0.62 for the third quarter ended September 30, 2018.

Water Section:

Diluted earnings per share from the water section for the three months ended September 30, 2019 increased by $0.06 per share as contrast to the same period in 2018. The following items affected the comparability between the two periods (not including the impact of billed surcharges, which have no impact to net earnings):

A raise in the water gross margin increased earnings by about $0.06 per share largely as a result of a May 2019 CPUC decision issued in GSWC’s water general rate case, which accepted new water rates and adopted supply costs for 2019. The 2019 water revenue requirement has also been reduced to reflect a decrease in depreciation expense, Because of a reduction in the overall composite depreciation rates based on a revised study filed in the general rate case. The decrease in depreciation expense lowers the water gross margin, and is offset by a corresponding decrease in depreciation expense as discussed below, resulting in no impact to net earnings.

An overall decrease in operating expenses (not including supply costs), which positively influenced earnings by $0.02 per share mostly Because of lower depreciation and administrative and general expenses. As discussed above, the lower depreciation expense is reflected in the new revenue requirement accepted in the general rate case. The decrease in administrative and general expenses was due, in large part, to timing differences related to the recognition of stock-based compensation expense. These decreases were partially offset by higher maintenance expense, and property and other taxes.

A decrease in the gains generated during the three months ended September 30, 2019 on investments held to fund a retirement benefit plan Because of market conditions as well as a raise in interest expense, reduced water earnings by about $0.01 per share, as contrast to the same period of 2018.

Changes in the effective income tax rate resulting from certain flow-through taxes and permanent items for the three months ended September 30, 2019 as contrast to the same period in 2018, reduced earnings at the water section by about $0.01 per share.

Year-to-date 2019 Results

Not Including the retroactive impact resulting from the electric general rate case related to the full year 2018, which is shown on a separate line in the table below, fully diluted earnings for the nine months ended September 30, 2019, as adjusted, were $1.79 per share contrast to $1.35 per share for the same period in 2018, a 33% increase. The table below sets forth a comparison of diluted earnings per share contribution by business section and for the parent company.

Electric Section:

The electric section’s recorded diluted earnings for the nine months ended September 30, 2019 were $0.15 per share. Not Including the $0.04 per share retroactive impact from the authorization of the general rate case related to the full year 2018, diluted earnings from GSWC’s electric operations for the nine months ended September 30, 2019 were $0.11 per share as contrast to $0.08 per share for the same period in 2018.

The increase was Because of a higher electric gross margin as a result of new rates authorized by the CPUC’s final decision in the general rate case, partially offset by a higher effective income tax rate as contrast to the nine months ended September 30, 2018Because of changes in certain flow-through taxes.

AWR has a gross margin of 80.50% and an operating margin of 26.50% while its profit margin remained 17.20% for the last 12 months. Its earnings per share (EPS) expected to touch remained -8.00% for this year while earning per share for the next 5-years is expected to reach at 6.00%.  The company has 37.39M of outstanding shares and 36.5M shares were floated in the market. According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.83% from the mean of 20 days, -4.49% from mean of 50 days SMA and performed 8.64% from mean of 200 days price. Company’s performance for the week was 0.97%, -7.55% for month and YTD performance remained 28.39%.

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