American Water Works Company 2024 EPS Guidance Range Increased From $5.10-$5.20 To $5.20-$5.30 Vs $5.16 Est., As A Result Of Interest Income On A Legacy Note Restructuring
Portfolio Pulse from Benzinga Newsdesk
American Water Works Company (AWK) has increased its 2024 EPS guidance from $5.10-$5.20 to $5.20-$5.30 due to increased interest income from a legacy note restructuring. The company reaffirms its long-term financial targets, including a 7-9% EPS and dividend growth rate. The increased interest income, approximately $0.10 per share per year, results from the amendment to the terms of the secured seller note receivable related to the sale of the former Homeowner Services Group (HOS), with the note's maturity date remaining at December 9, 2026. AWK's earnings forecasts are subject to various risks and uncertainties as outlined in its SEC filings.
February 14, 2024 | 9:35 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
American Water Works Company has raised its 2024 EPS guidance, indicating a positive outlook based on increased interest income from a legacy note restructuring.
The increase in AWK's EPS guidance for 2024 is a direct result of increased interest income from the restructuring of a legacy note. This adjustment reflects positively on the company's financial health and future earnings potential, likely leading to increased investor confidence and potentially a positive impact on the stock price in the short term. However, the company's caution regarding risks and uncertainties tempers the confidence level slightly.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100