American Water Works Company, Inc. (NYSE:AWK) reported its Q4 results, with EPS coming in $3.55, including a $2.75 one-time gain on the sale of the Homeowner Services business. Excluding the sale, EPS was in-line with estimates and was driven by increases in revenues from infrastructure investments and both acquisition-related and organic growth.

Quarterly revenue of $951 million was slightly below the consensus estimates. Management affirmed 2022 EPS expectations in the range of $4.39-$4.49 and its financial targets for 2022-2026, including expectations of 7% to 9% annual EPS growth.

Analysts at DA Davidson believe the company is positioned well to continue growing via acquisitions and modest ROE increases as it executes on its long-term capital investment targets. The analysts reiterated their Neutral rating while decreasing their price target to $164 from $178 to reflect lower valuation multiple expectations.