Boston, MA 03/17/2014 (wallstreetpr) – Water is a very precious commodity, yet we treat is with the least respect assuming that since the earth is covered with water, it will always be available to us. American States Water Co (NYSE:AWR) provides water and electricity utilities through its subsidiaries.
The Water and Electricity Utilities:
American States Water Co (NYSE:AWR) is engaged in the production and supply of water and electricity to various communities. It supplies water to over 75 communities in 1 counties within the state of California. California is in the midst of a major drought. Farmers have been at the receiving end as water resources are used to satisfy the needs of the local communities as well as the local industries first. Farmers resent this and want the state to treat them at par with industries.
The performance of this company has also revived the interest from analysts and investors. Analysts expect the company to deliver earnings of $1.51 per share in 2014. Investors will be able to get a good upside if the company can deliver according to expectations.
Strong fourth quarter earnings:
Though American States Water Co (NYSE:AWR) reported financial results for the fourth quarter last month, it is worthwhile to take a relook at them. Revenues were down 1.5% on y-on-y basis to $109.92 million. The consensus estimate was that the company would declare revenues of $112.35 million. However, the company beat analysts in the earnings expectations by a large margin. Though analysts had expected the company to declare earnings of $0.19 per share, the company managed to outperform and declare earnings of $0.30 per share. These were also higher than the earnings of $0.27 per share posted by the company for the same period last year.
American State Water also outperformed for the full fiscal. The company was able to register earnings of $1.61 per share for 2013 against $1.41 for 2012. The increase was primarily on account of increase in the water segment. Earnings in the water segment were higher by$0.29 per share over the previous year.