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California Water (CWT) Q2 Earnings & Revenues Miss Estimates

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California Water Service Group (CWT - Free Report) recorded second-quarter 2022 operating earnings per share (EPS) of 36 cents, which missed the Zacks Consensus Estimate of 60 cents by 40%. The bottom line declined by 52% from the year-ago quarter’s tally of 75 cents per share.

Total Revenues

Operating revenues of $206.2 million missed the Zacks Consensus Estimate of $223 million by 7.5%. The top line declined by 3.2% from $213.1 million in the prior-year quarter.

Operational Update

California Water’s total operating expenses in the second quarter were $178.9 million, up 4.7% from the year-ago quarter’s $170.9 million, due to an increase in maintenance costs and other operation costs.

Net operating income in the second quarter was $27.3 million, down 35.3% from the year-ago quarter’s reading of $42.2 million.

Net interest expenses were $11 million, up 1.9% from the year-ago quarter’s reading of $10.8 million.

Financial Update

As of Jun 30, 2022, CWT had cash and cash equivalents of $61.7 million compared with $78.4 million as of Dec 31, 2021.

As of Jun 30, 2022, California Water’s net long-term debt was $1,054.2 million, down 0.2% from $1,055.8 million as of Dec 31, 2021.

California Water invested $144.6 million in infrastructure improvements during the six months ended Jun 30, 2022.

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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

American States Water Co. (AWR - Free Report) is slated to report second-quarter 2022 earnings on Aug 1 after market close. The Zacks Consensus Estimate for American States Water’s first-quarter EPS is pegged at 77 cents. The Zacks Consensus Estimate for AWR’s 2022 earnings implies year-over-year growth of 4.9%.

Essential Utilities Inc. (WTRG - Free Report) is slated to report second-quarter 2022 earnings on Aug 3 after market close. The Zacks Consensus Estimate for Essential Utilities’ first-quarter EPS is pegged at 31 cents. The Zacks Consensus Estimate for WTRG’s 2022 earnings implies year-over-year growth of 6.6%.

Consolidate Water (CWCO - Free Report) is slated to report second-quarter 2022 earnings on Aug 15 before market open. The Zacks Consensus Estimate for Essential Utilities’ first-quarter EPS is pegged at 16 cents. The Zacks Consensus Estimate for CWCO’s 2022 earnings implies year-over-year growth of 191.3%.

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