California Water Service Group (NYSE:CWT) Issues Earnings Results

California Water Service Group (NYSE:CWT) released its quarterly earnings results on Thursday. The utilities provider reported $0.93 EPS for the quarter, beating the consensus estimate of $0.79 by $0.14, FiscalAI reports. California Water Service Group had a net margin of 11.77% and a return on equity of 7.06%. The business had revenue of $308.60 million during the quarter, compared to analyst estimates of $283.50 million. During the same period in the prior year, the firm posted $0.71 earnings per share. The company’s quarterly revenue was up 16.5% on a year-over-year basis.

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 midday trading on Thursday, hitting $50.51. The company had a trading volume of 678,345 shares, compared to its average volume of 481,627. The company has a fifty day simple moving average of $47.61 and a 200 day simple moving average of $45.91. The stock has a market cap of $3.02 billion, a price-to-earnings ratio of 25.26, a PEG ratio of 1.93 and a beta of 0.51. The company has a quick ratio of 0.65, a current ratio of 0.69 and a debt-to-equity ratio of 0.87. California Water Service Group has a 12-month low of $41.29 and a 12-month high of $53.82.

California Water Service Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Monday, August 10th will be given a $0.335 dividend. This represents a $1.34 annualized dividend 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 (DPR) is presently 67.00%.

Insider Activity at California Water Service Group

In other California Water Service Group news, Director Lester A. Snow sold 1,100 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $44.00, for a total transaction of $48,400.00. Following the transaction, the director owned 18,316 shares in the company, valued at approximately $805,904. This represents a 5.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Thomas M. Krummel sold 3,700 shares of the firm’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $43.30, for a total transaction of $160,210.00. Following the completion of the transaction, the director directly owned 23,805 shares of the company’s stock, valued at approximately $1,030,756.50. This represents a 13.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.78% of the stock is currently owned by insiders.

Institutional Trading of California Water Service Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CWT. Amundi increased its holdings in shares of California Water Service Group by 20.3% in the fourth quarter. Amundi now owns 2,738,993 shares of the utilities provider’s stock valued at $118,634,000 after purchasing an additional 462,394 shares during the period. Millennium Management LLC boosted its position in California Water Service Group by 5,365.1% in the third quarter. Millennium Management LLC now owns 368,074 shares of the utilities provider’s stock valued at $16,891,000 after buying an additional 361,339 shares during the last quarter. ExodusPoint Capital Management LP acquired a new position in California Water Service Group in the 4th quarter worth approximately $10,349,000. Jane Street Group LLC acquired a new stake in California Water Service Group during the 1st quarter valued at approximately $5,979,000. Finally, Adage Capital Partners GP L.L.C. purchased a new stake in shares of California Water Service Group in the 2nd quarter valued at $4,548,000. Institutional investors and hedge funds own 82.78% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. 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. 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. Finally, Robert W. Baird set a $54.00 price target on shares of California Water Service Group in a report on Friday, May 1st. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $54.50.

About California Water Service Group

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.