What's in Store for California Water (CWT) in Q2 Earnings?
California Water Service Group CWT is scheduled to release second-quarter 2023 results on Jul 27, before market open. The company delivered a negative earnings surprise of 600% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
During the second quarter, California Water is expected to have benefited from an interim increase in customer rates.
The company’s initiative to upgrade Stockton’s several water infrastructures is set to increase fire safety and reliability of the city's water supply. This initiative is likely to have boosted earnings in the to-be-reported quarter.
Similar to the previous quarters, contribution from the residential customers is likely to have boosted total revenues.
Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at 91 cents per share, implying a year-over-year increase of 152.8%.
The consensus mark for revenues is pinned at $232.5 million, indicating a 12.8% improvement year over year.
Our Zacks model predicts a 12% and 4.1% decline in water production costs and total operating expenses, respectively, in the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for California Water Service this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
California Water Service Group Price and EPS Surprise
California Water Service Group price-eps-surprise | California Water Service Group Quote
Earnings ESP: CWT’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #2.
Stocks to Consider
Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.
Eversource Energy ES is expected to report an earnings beat when it announces second-quarter results on Jul 31, after market close. It has an Earnings ESP of +1.55% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
ES’ long-term (three to five years) earnings growth rate is 6.34%. It delivered an average earnings surprise of 0.5% in the last four quarters.
Public Service Enterprise Group Inc. PEG is expected to come up with an earnings beat when it reports second-quarter results on Aug 1, before market open. It has an Earnings ESP of +3.97% and a Zacks Rank #2 at present.
PEG’s long-term earnings growth rate is 4.85%. It delivered an average earnings surprise of 4.33% in the last four quarters.
Ameren Corporation AEE is likely to report an earnings beat when it announces second-quarter results on Aug 2, after market close. It has an Earnings ESP of +11.82% and a Zacks Rank #3 at present.
AEE’s long-term earnings growth rate is 6.43%. It delivered an average earnings surprise of 4.7% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Ameren Corporation (AEE) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
California Water Service Group (CWT) : Free Stock Analysis Report
Eversource Energy (ES) : Free Stock Analysis Report
