California Water (CWT) Q2 Earnings Disappoint, Sales Decline Y/Y
California Water Service Group CWT recorded second-quarter 2023 adjusted earnings of 17 cents per share, which missed the Zacks Consensus Estimate of 91 cents by 81.3%. The bottom line also depreciated from the year-ago quarter’s figure of 36 cents.
Total Revenues
Operating revenues totaled $194 million, which missed the Zacks Consensus Estimate of $233 million by 16.7%. The top line also declined 5.9% from $206.2 million recorded in the prior-year quarter.
California Water Service Group Price, Consensus and EPS Surprise
California Water Service Group price-consensus-eps-surprise-chart | California Water Service Group Quote
Operational Update
California Water’s total operating expenses amounted to $178.1 million, down 0.4% from the year-ago quarter’s $178.9 million. Our model projected total operating expenses of $171.6 million for the same period.
CWT reported maintenance expenses of $7.2 million, down 6% year over year. Our model projected maintenance expenses of $7.7 million for the same period.
Net operating income was $15.9 million compared with the year-ago quarter’s level of $27.3 million.
Net interest expenses were $12.7 million, up 15.4% from the prior-year quarter’s $11 million.
Financial Update
As of Jun 30, 2023, CWT had cash and cash equivalents of $55.6 million compared with $62.1 million as of Dec 31, 2022.
As of Jun 30, 2023, net long-term debt was $1,052.1 million compared with $1,052.5 million as of Dec 31, 2022.
Net cash provided by operating activities in the first six months of 2023 was $37.5 million compared with $89.9 million in the year-ago period.
The company invested $177.2 million in infrastructure improvements during the first six months of 2023. The figure indicates a 22.3% increase from that recorded in the corresponding period of 2022.
Zacks Rank
Currently, CWT carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
American States Water Company AWR is scheduled to report second-quarter results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share, implying a year-over-year increase of 11.3%.
AWR’s long-term (three to five years) earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2023 earnings is pegged at $2.95 per share, implying a year-over-year improvement of 29.4%.
Global Water Resources Inc GWRS is slated to report second-quarter results on Aug 10, before market open. The Zacks Consensus Estimate for earnings is pegged at 8 cents per share.
GWRS’ long-term earnings growth rate is 15%. It delivered an average earnings surprise of 50.8% in the last four quarters.
Primo Water Corporation PRMW is slated to report second-quarter results on Aug 10, before market open. The Zacks Consensus Estimate for earnings is pegged at 21 cents per share.
PRMW delivered an average earnings surprise of 0.7% in the last four quarters. The Zacks Consensus Estimate for 2023 earnings is pegged at 79 cents per share, implying a year-over-year increase of 17.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
California Water Service Group (CWT) : Free Stock Analysis Report
American States Water Company (AWR) : Free Stock Analysis Report
Primo Water Corporation (PRMW) : Free Stock Analysis Report
Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report
