American Water Works Company, Inc. (AWK) has reported a 13.41 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $93 million, or $0.52 a share in the quarter, compared with $82 million, or $0.46 a share for the same period last year. Revenue during the quarter went up marginally by 1.75 percent to $756 million from $743 million in the previous year period. Total expenses were 69.97 percent of quarterly revenues, down from 71.20 percent for the same period last year. This has led to an improvement of 122 basis points in operating margin to 30.03 percent.
Operating income for the quarter was $227 million, compared with $214 million in the previous year period.
"Our first quarter results demonstrate that American Water employees continue to grow our business by focusing on our customers and communities," said Susan Story, president and chief executive officer of American Water. “Our results were solid, with first quarter 2017 earnings per diluted share up 13.0 percent compared to last year. Reflecting the company’s solid performance, the Board of Directors approved a 10.7 percent increase in our quarterly dividend to 41.5 cents per share, marking the fifth year in a row that the dividend increases are at or above the top of the long-term EPS growth range."
For fiscal year 2017, American Water Works Company, Inc. expects diluted earnings per share from continuing operations to be in the range of $2.98 to $3.08.
Working capital remains negative
Working capital of American Water Works Company, Inc. was negative $1,651 million on Mar. 31, 2017 compared with negative $976 million on Mar. 31, 2016. Current ratio was at 0.32 as on Mar. 31, 2017, down from 0.40 on Mar. 31, 2016. Days sales outstanding went down to 31 days for the quarter compared with 61 days for the same period last year.
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