American Water's Earnings and Revenue Sail By Wall Street's Estimates
American Water Works (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility, reported its third-quarter 2023 results on Wednesday after the closing bell. Shares surged 4.8% on Thursday and tacked on 4.5% on Friday, for a two-day gain of 9.5%. This is a robust performance for a utility stock, especially one of a large company.
This performance can be attributed to a combination of the company's better-than-expected Q3 report and market dynamics. The stock market posted strong gains on Thursday and Friday, driven by the growing sentiment among market participants that the U.S. Federal Reserve is done with raising interest rates.
For some context about how much of a tailwind American Water stock might have received from the market dynamics, you might consider the same two-day performance of other larger water utility stocks: American States Water was up 5% and California Water Service Group was up 6.4%.
Source Fool.com
