AWK reported 24Q2 EPS of $1.42, down from $1.44 in 23Q2 and below my estimate of $1.48.  Operating revenues rose 4.7% to $1.14 billion.  Billed water service volumes declined 0.4%, but this was more than offset by an estimated 5.3% increase in average prices.  Operating and maintenance expenses increased 3.2%, mostly due to higher purchased water cost and usage, increased employee-related costs and higher other operating expenses.  Operating income rose 3.9% to $449 million; but the increase was offset by higher interest costs and a higher effective tax rate.  Net income decreased 1.1%.

AWK reported 24Q1 EPS of $0.95, up from $0.91 in 23Q1.  Consensus was $0.97.  This quarter’s results included a $0.02 benefit from an increase in interest income on the Home Services Group seller note.  Operating revenues rose 7.8% to $1.01 billion.  Billed water service volumes were flat.  Operating and maintenance expenses increased 5.9%, mostly due to higher purchased water usage and fuel, power and chemicals costs.  Operating income rose 10.5% to $326 million.  Other expense, including interest expense, rose, while the effective tax rate increased 300 bp to 23.6%.  Net income increased 8.8% and EPS rose 3.8%, due to a higher share count from last year’s equity offering.

AWK reported 23Q3 EPS of $1.44, up from $1.63 in 22Q3 and my estimate of $1.61.  This quarter’s results included a $0.04 benefit from warm, dry weather.  22Q3’s weather benefit was $0.06.  Operating revenues increased 7.9% to $1.17 billion.  Billed water service volumes declined 2.5%.  The implied average price of water service rose 10.7%, mostly because of rate cases and infrastructure charges that became effective after Jan. 1.  Operating and maintenance expenses increased 3.7%, as the O&M cost ratio declined 100 bp to 32.6%.  Operating income rose 8.9% to $478 million, with a similar increase in net income.  As a result of the higher share count following March’s $1.7 billion equity issuance, EPS grew 1.5%.

AWK reported 23Q2 EPS of $1.44, up from $1.20 in 22Q2 and my estimate of $1.18.  This quarter’s results included a $0.07 benefit from warm, dry weather.  Operating revenues increased 17.1% to $1.1 billion.  Billed water service volumes increased 3.7%, with gains of 6.0% in residential and 9.2% in public more than offsetting a 9.4% decline in industrial.  The implied average price of water service rose 10.5%, mostly because of $340 million in rate cases and infrastructure charges that became effective after Jan. 1.  Operating and maintenance expenses increased 11.4%, slower than revenues, due to continuing inflationary pressures. The O&M cost ratio therefore declined by 190 bp to 38.2%.  Operating income jumped 32.1% to $43 million, but a higher effective tax rate limited net income growth to a still strong 28.4%.  With a higher share count from March’s $1.7 billion equity issuance, EPS grew 20%.

AWK reported 23Q1 EPS of $0.91, compared with $0.87 in 22Q1 and my estimate of $0.83.  Operating revenues increased 11.4% to $938 million.  Billed water service volumes increased 0.4%, with gains among industrial and commercial customers more than offsetting a 1.0% decline in residential volume.  The implied average price of water service rose 8.4%, due mostly to $279 million in rate cases and infrastructure charges that became effective after Jan. 1.  Operating expenses increased 4.8% due primarily to inflationary pressures which raised the cost of fuel, power and chemicals.  Operating income increased 19.9% to $295 million, but that was partially offset be a 15% increase in interest expense, lower pension income and a 150 bp increase in the effective tax rate.  Net income rose 7.6% to $170 million, but a higher share count, due to the successful $1.7 billion equity offering in March, restricted the increase in diluted EPS to $5.3% or $0.91 per share.

AWK reported 22Q4 EPS of $0.81, compared with $3.56 in 21Q4 (or $0.86 excluding a $2.70 gain for the sale of the Homeowner Services (HOS) business).  Operating revenues decreased 2.1% to $931 million.  Besides the sale of HOS, 22Q4’s lower revenues and earnings were due in part to the sale of New York American Water.  My 22Q4 estimate was $0.78.  An 18.6% increase in operating income was more than offset by higher net interest expense, a negative swing in other income (expense) and higher income tax expense (net of the HOS gain on sale).