California Water (CWT) Q3 Earnings Miss Estimates, Sales Beat
California Water Service Group CWT recorded third-quarter 2022 operating earnings per share (EPS) of $1.03, which missed the Zacks Consensus Estimate of $1.16 by 11.2%. The bottom line declined 3.3% from the year-ago quarter’s $1.20 per share.
Total Revenues
Operating revenues of $266.3 million surpassed the Zacks Consensus Estimate of $255 million by 4.4%. The top line improved 3.7% from $256.7 million 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
Due to increased maintenance and other operational costs, California Water’s total operating expenses in the third quarter were $201.4 million, up 8.5% from the year-ago quarter’s $185.6 million.
Net operating income in the third quarter was $64.9 million, down 8.7% from the year-ago quarter’s reading of $71.1 million. In the reported quarter, the company received a benefit of $7.3 million due to the rate increase.
Net interest expenses were $11.9 million, up 1.7% from the year-ago quarter’s reading of $11.7 million.
Financial Update
As of Sep 30, 2022, CWT had cash and cash equivalents of $90.5 million compared with $78.4 million as of Dec 31, 2021.
As of Sep 30, 2022, California Water’s net long-term debt was $1,053.9 million, down 0.2% from $1,055.8 million as of Dec 31, 2021.
The company invested $222.1 million in infrastructure improvements during the first nine months of 2022, up 6.9% from the year-ago period.
Guidance
California Water reiterated the capital expenditure plan of $355 million, $360 million and $365 million for 2022, 2023 and 2024, respectively.
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 Water Works AWK is slated to report third-quarter 2022 earnings on Oct 31, after market close. The Zacks Consensus Estimate for American Water Works’ third-quarter EPS is pegged at $1.50. The Zacks Consensus Estimate for AWK’s 2022 earnings implies year-over-year growth of 4.5%.
Essential Utilities Inc. WTRG is slated to report third-quarter 2022 earnings on Nov 7, before the market opens. The Zacks Consensus Estimate for Essential Utilities’ third-quarter EPS is pegged at 21 cents. The Zacks Consensus Estimate for WTRG’s 2022 earnings implies year-over-year growth of 6.6%.
American States Water Company AWR is slated to report third-quarter 2022 earnings on Nov 7, after the market closes. The Zacks Consensus Estimate for American States Water’s third-quarter EPS is pegged at 70 cents. The Zacks Consensus Estimate for AWR’s 2022 earnings implies year-over-year growth of 2%.
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