H2O America (NASDAQ:HTO) Posts Earnings Results, Misses Estimates By $0.02 EPS

H2O America (NASDAQ:HTO) released its quarterly earnings results on Monday. The utilities provider reported $1.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.06 by ($0.02), FiscalAI reports. The firm had revenue of $250.23 million for the quarter. H2O America had a return on equity of 6.65% and a net margin of 12.91%.

H2O America Stock Down 0.7%

Shares of H2O America stock opened at $58.48 on Tuesday. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.67 and a current ratio of 1.67. H2O America has a 52-week low of $43.75 and a 52-week high of $67.09. The stock has a market capitalization of $2.45 billion, a price-to-earnings ratio of 20.66, a P/E/G ratio of 6.80 and a beta of 0.33. The company’s 50 day moving average price is $61.34 and its 200-day moving average price is $58.62.

H2O America Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 9th will be issued a dividend of $0.44 per share. The ex-dividend date is Monday, November 9th. This represents a $1.76 annualized dividend and a yield of 3.0%. H2O America’s dividend payout ratio is currently 62.19%.

Analyst Ratings Changes

Several brokerages recently issued reports on HTO. Seaport Research Partners reiterated a “buy” rating and issued a $67.00 price target on shares of H2O America in a report on Wednesday, August 12th. Robert W. Baird upped their target price on shares of H2O America from $67.00 to $72.00 and gave the company an “outperform” rating in a research note on Wednesday, July 29th. Wall Street Zen raised H2O America from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Barclays reduced their target price on shares of H2O America from $66.00 to $65.00 and set an “overweight” rating for the company in a report on Monday, October 19th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of H2O America in a research report on Monday, August 3rd. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, H2O America currently has an average rating of “Moderate Buy” and a consensus price target of $64.50.

Hedge Funds Weigh In On H2O America

Several hedge funds and other institutional investors have recently modified their holdings of HTO. Public Employees Retirement System of Ohio bought a new stake in shares of H2O America during the 2nd quarter valued at $37,000. Bessemer Group Inc. grew its position in shares of H2O America by 44.6% in the 1st quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider’s stock worth $39,000 after buying an additional 204 shares during the period. Allworth Financial LP purchased a new stake in shares of H2O America in the 2nd quarter worth about $42,000. EverSource Wealth Advisors LLC increased its stake in shares of H2O America by 76.2% in the 1st quarter. EverSource Wealth Advisors LLC now owns 911 shares of the utilities provider’s stock worth $53,000 after acquiring an additional 394 shares in the last quarter. Finally, Versant Capital Management Inc increased its stake in shares of H2O America by 22.0% in the 2nd quarter. Versant Capital Management Inc now owns 980 shares of the utilities provider’s stock worth $60,000 after acquiring an additional 177 shares in the last quarter. Hedge funds and other institutional investors own 84.29% of the company’s stock.

More H2O America News

Here are the key news stories impacting H2O America this week:

• Positive Sentiment: Third-quarter operating revenue increased 4% year over year to $250.2 million, while revenue for the first nine months rose 6% to $644.0 million. H2O America Announces Third Quarter 2026 Financial Results
• Positive Sentiment: H2O America declared a quarterly dividend of $0.44 per share, payable December 1 to shareholders of record November 9. The annualized dividend is $1.76, representing an indicated yield of approximately 3.0%.
• Positive Sentiment: The Quadvest acquisition closed October 1, adding growth potential. Quadvest active connections increased 14%, or 7,700, during 2026, while contracted and pending-development connections rose 13%, or 11,300.
• Neutral Sentiment: The company invested $325.1 million in infrastructure through the third quarter and expects approximately $465 million of company-funded capital spending for 2026. It maintained its longer-term $2.7 billion, 2026–2030 capital plan and long-term earnings-growth targets.
• Negative Sentiment: Third-quarter adjusted diluted EPS was $1.04, below the $1.06 analyst consensus, while GAAP diluted EPS fell to $0.99 from $1.27 a year earlier. GAAP net income declined 5% to $43.0 million as operating expenses rose 8% to $189.7 million. H2O Q3 Earnings Fall, Revenue Rises; Updates Guidance
• Negative Sentiment: Although standalone 2026 adjusted EPS guidance was narrowed to $3.10–$3.16, guidance including the Quadvest acquisition and pending Cibolo Valley acquisition was initiated at a lower $2.91–$2.97 range, reflecting acquisition and financing dilution. This weaker near-term earnings outlook is the primary negative catalyst.

About H2O America