American Water Works Company, Inc. (AWK) has reported a 14.94 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $148 million, or $0.83 a share in the quarter, compared with $174 million, or $0.96 a share for the same period last year. On an adjusted basis, earnings per share were at $1.05 for the quarter compared with $0.96 in the same period last year.
Revenue during the quarter grew 3.79 percent to $930 million from $896 million in the previous year period. Total expenses were 65.70 percent of quarterly revenues, up from 59.71 percent for the same period last year. That has resulted in a contraction of 599 basis points in operating margin to 34.30 percent.
Operating income for the quarter was $319 million, compared with $361 million in the previous year period.
"American Water's employees delivered a strong quarter of business results," said Susan Story, president and chief executive officer of American Water. "We continued to invest in our customers' critical water and wastewater infrastructure while improving operational efficiency to keep costs down. We continued our path to growth, with our closed and pending acquisitions representing the addition of 78,500 customers and we continued to provide solutions for local communities dealing with distressed water and wastewater systems."
For fiscal year 2016, the company expects diluted earnings per share to be in the range of $2.59 to $2.64. The company expects diluted earnings per share to be in the range of $2.81 to $2.86 on adjusted basis.
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