California Water Service Group (NYSE:CWT – Get Free Report) released its quarterly earnings data on Thursday. The utilities provider reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.14, FiscalAI reports. The business had revenue of $308.60 million during the quarter, compared to analyst estimates of $283.50 million. California Water Service Group had a return on equity of 7.06% and a net margin of 11.77%.The company’s revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the business posted $0.71 EPS.
Here are the key takeaways from California Water Service Group’s conference call:
- Second-quarter earnings increased to $56.5 million, or $0.93 per diluted share, from $42.2 million, or $0.71 per share, in the prior-year quarter. Results benefited from $15.3 million of retroactive California rate-case revenue, $15 million from rate changes, and $9.3 million of deferred WRAM revenue.
- Capital investment rose 23% year over year to $147 million in the quarter and reached a record $276 million for the first half. Management projects nearly 12% annual rate-base growth and approximately $3.5 billion of rate base by the end of 2028, supported by infrastructure and PFAS-treatment spending.
- California’s general rate case is now effective, including roughly $1.7 billion of approved and advice-letter capital through 2027, while Washington regulators are expected to approve a settlement providing $4.12 million in additional revenue and a 10.18% ROE.
- Management continues to target closing the Nexus acquisitions in Nevada and Oregon before year-end and is pursuing full ownership of the BVRT Texas joint venture, but the transactions remain subject to regulatory approvals. The company said M&A will remain opportunistic rather than necessary for growth.
- The company raised $88 million through its at-the-market stock program during the quarter, creating shareholder dilution, while higher water-supply costs and income taxes partially offset earnings gains. PFAS treatment also remains a significant capital requirement, although management expects recoveries from polluters and grants to reduce the net burden.
California Water Service Group Price Performance
Shares of NYSE CWT traded down $1.22 during trading on Thursday, hitting $50.51. The company had a trading volume of 678,345 shares, compared to its average volume of 481,627. The firm has a market capitalization of $3.02 billion, a price-to-earnings ratio of 25.26, a price-to-earnings-growth ratio of 1.93 and a beta of 0.51. The stock has a fifty day simple moving average of $47.61 and a two-hundred day simple moving average of $45.91. The company has a quick ratio of 0.65, a current ratio of 0.69 and a debt-to-equity ratio of 0.87. California Water Service Group has a fifty-two week low of $41.29 and a fifty-two week high of $53.82.
California Water Service Group Announces Dividend
Analyst Upgrades and Downgrades
CWT has been the topic of several analyst reports. Wall Street Zen raised California Water Service Group from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Robert W. Baird set a $54.00 price objective on California Water Service Group in a research report on Friday, May 1st. Finally, Weiss Ratings raised shares of California Water Service Group from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, June 12th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $54.50.
View Our Latest Stock Report on CWT
Insider Activity
In related news, Director Lester A. Snow sold 1,100 shares of California Water Service Group stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $44.00, for a total value of $48,400.00. Following the sale, the director directly owned 18,316 shares in the company, valued at approximately $805,904. The trade was a 5.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Thomas M. Krummel sold 3,700 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $43.30, for a total value of $160,210.00. Following the sale, the director owned 23,805 shares of the company’s stock, valued at approximately $1,030,756.50. This trade represents a 13.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.78% of the stock is owned by corporate insiders.
Institutional Trading of California Water Service Group
Large investors have recently made changes to their positions in the company. Danske Bank A S acquired a new position in California Water Service Group in the 3rd quarter valued at $28,000. EverSource Wealth Advisors LLC boosted its stake in California Water Service Group by 109.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 697 shares of the utilities provider’s stock worth $32,000 after purchasing an additional 365 shares during the last quarter. Advisory Services Network LLC purchased a new stake in shares of California Water Service Group during the third quarter worth $44,000. CIBC Private Wealth Group LLC grew its holdings in shares of California Water Service Group by 1,475.3% during the third quarter. CIBC Private Wealth Group LLC now owns 1,150 shares of the utilities provider’s stock worth $53,000 after buying an additional 1,077 shares in the last quarter. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of California Water Service Group in the fourth quarter valued at about $85,000. 82.78% of the stock is currently owned by hedge funds and other institutional investors.
About California Water Service Group
California Water Service Group (NYSE: CWT) is a publicly traded holding company that provides regulated water utility services through its subsidiaries. The company delivers safe, reliable drinking water and wastewater management to residential, commercial, industrial and municipal customers across California, Hawaii and New Mexico. Its principal operating units include California Water Service, New Mexico Water Service and Hawaii Water Service, each responsible for end‐to‐end water supply operations—from source development and treatment to distribution and customer service.
Founded in 1926 as the California Water Service Company, the group has grown to become one of the largest investor‐owned water utilities in the United States by customer count.
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