California Water Service Group (NYSE:CWT) Announces Quarterly Earnings Results, Beats Estimates By $0.14 EPS

California Water Service Group (NYSE:CWT) released its quarterly earnings data on Thursday. The utilities provider reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.14, FiscalAI reports. California Water Service Group had a net margin of 11.77% and a return on equity of 7.06%. The firm had revenue of $308.60 million for the quarter, compared to analyst estimates of $283.50 million. During the same quarter in the prior year, the business earned $0.71 EPS. The company’s revenue for the quarter was up 16.5% compared to the same quarter last year.

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 Trading Up 0.7%

Shares of California Water Service Group stock traded up $0.34 during trading on Friday, reaching $50.84. 94,678 shares of the company were exchanged, compared to its average volume of 478,875. The business has a 50-day moving average price of $47.76 and a 200-day moving average price of $45.96. The firm has a market capitalization of $3.04 billion, a price-to-earnings ratio of 25.42, a P/E/G ratio of 1.90 and a beta of 0.51. 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 twelve month low of $41.29 and a twelve month high of $53.82.

California Water Service Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Monday, August 10th will be paid a dividend of $0.335 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $1.34 dividend on an annualized basis and a dividend yield of 2.6%. California Water Service Group’s payout ratio is 67.00%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on CWT. Robert W. Baird set a $54.00 price objective on shares of California Water Service Group in a research note on Friday, May 1st. Wall Street Zen raised shares of California Water Service Group from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Finally, Weiss Ratings raised shares of California Water Service Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, June 12th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $54.50.

Insider Activity

In other news, Director Thomas M. Krummel sold 3,700 shares of the company’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $43.30, for a total value of $160,210.00. Following the completion of the sale, the director directly owned 23,805 shares of the company’s stock, valued at $1,030,756.50. This represents a 13.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Lester A. Snow sold 1,100 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $44.00, for a total transaction of $48,400.00. Following the completion of the sale, the director owned 18,316 shares in the company, valued at $805,904. This represents a 5.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.78% of the company’s stock.

Hedge Funds Weigh In On California Water Service Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CWT. T. Rowe Price Investment Management Inc. increased its position in shares of California Water Service Group by 1.1% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,337,205 shares of the utilities provider’s stock valued at $144,602,000 after buying an additional 36,296 shares in the last quarter. Amundi lifted its holdings in California Water Service Group by 20.3% during the fourth quarter. Amundi now owns 2,738,993 shares of the utilities provider’s stock worth $118,634,000 after acquiring an additional 462,394 shares in the last quarter. Geode Capital Management LLC grew its stake in California Water Service Group by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 1,420,950 shares of the utilities provider’s stock valued at $61,579,000 after acquiring an additional 4,613 shares during the period. Dimensional Fund Advisors LP grew its stake in California Water Service Group by 0.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,153,931 shares of the utilities provider’s stock valued at $50,001,000 after acquiring an additional 4,913 shares during the period. Finally, Invesco Ltd. grew its stake in California Water Service Group by 6.4% in the fourth quarter. Invesco Ltd. now owns 954,234 shares of the utilities provider’s stock valued at $41,347,000 after acquiring an additional 57,170 shares during the period. 82.78% of the stock is owned by institutional investors.

California Water Service Group Company Profile

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.