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

California Water Service Group (NYSE:CWT) released its earnings results on Thursday. The utilities provider reported $0.93 EPS for the quarter, topping the consensus estimate of $0.79 by $0.14, FiscalAI reports. The business had revenue of $308.60 million for the quarter, compared to the consensus estimate 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 for the quarter was up 16.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.71 earnings per share.

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 Stock Performance

Shares of California Water Service Group stock traded down $1.22 during trading on Thursday, hitting $50.51. 678,345 shares of the company’s stock traded hands, compared to its average volume of 385,416. The business has a 50-day simple moving average of $47.61 and a 200-day simple moving average of $45.91. The stock has a market capitalization of $3.02 billion, a P/E ratio of 25.86, a PEG ratio of 1.90 and a beta of 0.51. California Water Service Group has a 1 year low of $41.29 and a 1 year high of $53.82. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.69 and a quick ratio of 0.65.

California Water Service Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Monday, August 10th will be issued a dividend of $0.335 per share. This represents a $1.34 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Monday, August 10th. California Water Service Group’s dividend payout ratio is presently 67.00%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on CWT. 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. Robert W. Baird set a $54.00 target price on shares of California Water Service Group in a report on Friday, May 1st. Finally, Weiss Ratings upgraded 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 investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $54.50.

Insider Buying and Selling at California Water Service Group

In related news, Director Lester A. Snow sold 1,100 shares of the firm’s stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $44.00, for a total value of $48,400.00. Following the transaction, the director directly owned 18,316 shares of the company’s stock, valued at approximately $805,904. This trade represents a 5.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas M. Krummel sold 3,700 shares of the stock in a transaction 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 completion of the sale, the director owned 23,805 shares of the company’s stock, valued at $1,030,756.50. The trade was a 13.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.78% of the company’s stock.

Institutional Investors Weigh In On California Water Service Group

Institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System lifted its stake in California Water Service Group by 0.5% in the 2nd quarter. California State Teachers Retirement System now owns 54,416 shares of the utilities provider’s stock worth $2,475,000 after purchasing an additional 278 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in California Water Service Group by 109.9% during the second quarter. EverSource Wealth Advisors LLC now owns 697 shares of the utilities provider’s stock valued at $32,000 after buying an additional 365 shares during the last quarter. Martingale Asset Management L P grew its holdings in California Water Service Group by 0.6% during the 3rd quarter. Martingale Asset Management L P now owns 82,597 shares of the utilities provider’s stock valued at $3,790,000 after buying an additional 519 shares in the last quarter. Commonwealth Equity Services LLC increased its stake in California Water Service Group by 4.3% in the 4th quarter. Commonwealth Equity Services LLC now owns 13,729 shares of the utilities provider’s stock worth $595,000 after acquiring an additional 568 shares during the last quarter. Finally, Danske Bank A S purchased a new stake in shares of California Water Service Group during the 3rd quarter worth approximately $28,000. 82.78% of the stock is owned by hedge funds and other 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.