American Water Slides After 2015 Earnings Estimates Falls Short

(Bloomberg) — American Water Works Co., the largest
publicly traded U.S. water utility, fell to the lowest in five
weeks after saying 2015 earnings may not meet analysts’
estimates.

American Water declined 1.2 percent to $51.73 at 1:29 p.m.
in New York. Earlier, it fell as much as 1.8 percent to $51.41,
the lowest intraday since Nov. 7.

Earnings from continuing operations next year will be $2.55
to $2.65 per share, the Voorhees, New Jersey-based company said
today in a statement. The average estimate of 17 analysts
surveyed by Bloomberg is $2.61.

“We will continue to make investments to ensure reliable
service, develop and leverage new technologies to increase
efficiencies, maintain strong regulatory relationships and grow
strategically,” Chief Executive Officer Susan Story said in the
statement.

Story said she is confident in per-share growth of 7
percent to 10 percent, from 2013.

American Water last month reported third-quarter net income
rose 4.5 percent from a year ago, boosted by closing on four
acquisitions. Those deals netted the company about 2,200 new
customers.

To contact the reporter on this story:
Justin Doom in New York at
jdoom1@bloomberg.net

To contact the editors responsible for this story:
Randall Hackley at
rhackley@bloomberg.net
Jim Efstathiou Jr., Robin Saponar

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