Earnings Analysis for AWK for the Last 3 Years

Revenue Analysis:

Total and Operating Revenue: AWK has shown fluctuations in total and operating revenue over the past periods, peaking at $1,167,000,000 in Q3 2023 and diminishing slightly to $1,011,000,000 by Q1 2024. This pattern suggests variability in sales or services provided by the company.

Gross Profit: Similarly, gross profit followed revenue patterns, highest at $731,000,000 in Q3 2023, and lowered to $595,000,000 by Q1 2024, highlighting potential volatility in profit margins or operational efficiency.

Cost Management:

Cost of Revenue: Cost of revenue has remained significant, peaking at $472,000,000 in Q4 2023. The cost management seems aligned with revenue scales but involves high expenditure relative to total income.

Operating Expense: Operating expenses showed a varied trend, with the lowest at $246,000,000 in Q2 2023 and a slight increase noticed over the successive quarters.

Total Expenses: Total expenses were highest in Q4 2023 at $733,000,000 and lowest in Q1 2023 at $643,000,000, reflecting a critical area for potential cost optimization.

Profitability Analysis:

EBITDA: EBITDA was most robust in Q3 2023 at $701,000,000, diminishing to $554,000,000 by Q1 2024, directly influencing the company’s operational profitability.

Operating Income: Operating income peaked in Q3 2023 at $478,000,000 and decreased to $326,000,000 by Q1 2024. This decline might impact the company’s ability to expand or reinvest.

Pretax Income: The pretax income was highest in Q3 2023 at $407,000,000, showing a downward trend to $242,000,000 by Q1 2024, indicating pressure on earnings before tax adjustments.

Net Income: Net income reflects a similar trend, high at $323,000,000 in Q3 2023 and reduced to $185,000,000 by Q1 2024, suggesting a need for better profitability strategies.

Cash Flow Indicators:

Reconciled Depreciation: Depreciation values were consistent, showing careful asset management and standard depreciation policies in place.

Interest Expense: The interest expense showcased a consistent burden on finances, implicating potential reevaluation of debt management or financial structuring.

Taxation:

Tax Rate: The tax rate fluctuated slightly but remained around 21-23%, which is expected. No unordinary items affected the tax rates significantly.

Tax Provision: Tax provisions correspond initially with changes in pre-tax income, indicating a direct and proportional tax strategy.

Shareholder Metrics:

Diluted and Basic EPS: EPS peaked in Q3 2023 at 1.66, and then fell to 0.95 by Q1 2024, hinting at reduced profitability per share which might affect investor sentiment.

Average Shares and Net Income Available to Common Stockholders: Average shares stood mostly unchanged, ensuring fairness in earnings distribution among shareholders.

Conclusion:

AWK has shown signs of strong performance in certain quarters but faces challenges with consistency in profit margins, cost efficiency, and interest burdens. The analysis suggests a need for stringent cost control measures, possibly optimizing operational efficiencies, and reassessing financial strategies to enhance shareholder value.