GET DAILY SIGNALSAmerican States Water (AWR) Delivers Steady Q3 Results with +11% Year-to-Date EPS Growth
Key Takeaways
- American States Water reported third quarter 2026 earnings per share (EPS) of $1.06, flat versus the same period in 2025 and slightly below the roughly $1.08 consensus estimate.
- On an adjusted basis, EPS rose to $1.06 from $1.01 a year earlier, a $0.05 per-share gain driven by new customer rate increases at its regulated utilities.
- Total operating revenue climbed to approximately $192.5 million, up from $182.7 million in the prior-year quarter.
- Year-to-date EPS reached $2.92, an 11.0% increase over the $2.63 reported in the first nine months of 2025.
- The quarter reflected a $0.05 per-share unfavorable swing from retirement plan investment returns, which moved to a small loss versus a gain a year ago.
- The company reaffirmed plans for $185 million to $220 million in regulated utility capital investment in 2026 and raised its quarterly dividend to $0.5455 per share.
- For more context on AWR, explore its Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
- Discover automated trading ideas and market insights by exploring Trending AI Robots.
Earnings Context and Why It Matters
American States Water runs three main operations: the Golden State Water utility, the Bear Valley Electric utility, and the American States Utility Services (ASUS) segment that handles contracted services for military bases. Its regulated utilities tie returns to approved rate cases and rate base expansion, so this report serves as a useful check on how effectively the company is turning California Public Utilities Commission authorizations into actual earnings. I am also watching the dividend streak closely—the firm has now raised payouts for 72 straight years. With shares having moved higher through 2026, the update offers a test of whether rate-driven profit growth can support the valuation and dividend path going forward.
Reported Results
American States Water posted third quarter 2026 net income of $42.3 million, compared with $41.2 million in the prior-year period, with basic and fully diluted EPS of $1.06 in both years. On an adjusted basis that now excludes gains and losses on investments held to fund a retirement plan, diluted EPS was $1.06, up $0.05 from the $1.01 reported a year ago. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Total operating revenue was approximately $192.5 million, up from $182.7 million. Segment-level EPS broke down as follows: water contributed $0.85 (versus $0.86), electric $0.05 (versus $0.04), and contracted services $0.17 (versus $0.19). The parent company narrowed its loss to $0.01 per share from $0.03.
The main driver of the adjusted improvement came from the CPUC-authorized second-year water rate increases that took effect January 1, 2026, along with roughly 1% higher water consumption. Those gains were partly offset by higher operating, supply, and interest expenses. A notable non-operating item was a small loss of about $17,000 on retirement plan investments this quarter, versus a $2.5 million gain a year earlier.
For the first nine months of 2026, reported EPS was $2.92, up 11.0% from $2.63, while adjusted EPS rose 12.6% to $2.86. The company also noted it completed its at-the-market equity offering program in June 2026 after raising $200 million, with no plans for additional equity issuance through at least 2029.
Market Reaction and Investor Sentiment
AWR shares edged higher around the release, trading near $88.61, reflecting a modestly positive but measured response. Because headline EPS of $1.06 landed slightly below the roughly $1.08 consensus, the initial reaction was tempered; however, the $0.05 year-over-year increase in adjusted EPS—driven by durable rate increases rather than one-time items—supported a constructive tone. Investors appeared to weigh the small earnings miss against the stability of the regulated utility model, the strengthened balance sheet following the completion of the ATM program, and the reaffirmed full-year capital investment range. The retirement plan investment volatility was widely understood to be non-core, limiting any negative sentiment.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should watch whether the second-year rate increases continue flowing through to results in the fourth quarter and into 2027. The regulated utilities remain on track to invest $185 million to $220 million in infrastructure in 2026, which supports future rate base growth and earnings.
The contracted services segment, ASUS, is expected to contribute $0.63 to $0.67 per share for full-year 2026, and management noted roughly $31 million in newly awarded construction projects expected to be completed through 2029.
Two areas merit ongoing attention. First, Golden State Water’s shift to a modified revenue decoupling mechanism and an incremental water supply cost balancing account means consumption changes and water supply mix can now create earnings volatility. Second, the company’s pending rate case filings—including a water general rate case covering 2028 through 2030—will shape the authorized return and capital budgets for the next cycle.
Finally, dividend-focused investors will monitor whether AWR can sustain its long-term goal of more than 7% annual dividend growth, following an 8.2% increase during 2026.
Using Tickeron Tools in My Research
In my own analysis of utilities like AWR, I frequently turn to Tickeron’s AI tools to quickly scan for comparable names and confirm technical trends. The AI Screener stands out for its ability to filter by fundamentals, patterns, and performance metrics, helping surface ideas that might otherwise take hours to identify manually. It has become a regular part of how I cross-check sector opportunities and stay efficient when reviewing earnings reports.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AWR's RSI Indicator climbs out of oversold territory
The RSI Oscillator for AWR moved out of oversold territory on October 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 23 similar instances when the indicator left oversold territory. In 14 of the 23 cases the stock moved higher. This puts the odds of a move higher at 61%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on AWR as a result. In 46 of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 48%.
The Moving Average Convergence Divergence (MACD) for AWR just turned positive on October 12, 2026. Looking at past instances where AWR's MACD turned positive, the stock continued to rise in 28 of 56 cases over the following month. The odds of a continued upward trend are 50%.
AWR moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AWR crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 42%.
Following a +2.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where AWR advanced for three days, in 137 of 280 cases, the price rose further within the following month. The odds of a continued upward trend are 49%.
The Aroon Indicator entered an Uptrend today. In 74 of 167 cases where AWR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 44%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AWR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
AWR broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 36 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. AWR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 84 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AWR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Valuation Rating of 89 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AWR's P/B Ratio (3.070) is slightly higher than the industry average of (1.864). P/E Ratio (23.735) is within average values for comparable stocks, (24.315). Projected Growth (PEG Ratio) (2.799) is also within normal values, averaging (3.694). Dividend Yield (0.025) settles around the average of (0.034) among similar stocks. P/S Ratio (4.885) is also within normal values, averaging (4.350).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of water supply and electricity distribution services
Industry WaterUtilities
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