The utility sector continues with its steady run of performance, thanks to its domestic focus that insulates it from international turmoil. This is amply reflected in bullish sector projections. Q2 earnings at the utilities are expected to jump 20.9% while revenues are expected to be up 2.4% from the same period last year.
Nine out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline. The earnings growth rate of the utilities is the highest among the seven sectors which are expected to be in the positive zone this quarter. Read more details from our weekly Earnings Preview report.
The second-quarter 2016 earnings season is well underway, with nearly 25% of the S&P 500 members having released their earnings as of Jul 22. Total earnings are down 1.1% from the same period last year on 2.6% lower revenues. Overall, total S&P 500 earnings are expected to be down 3.4% on 0.5% lower revenues.
Against this backdrop, let us focus on the water utility space, which is now under public glare with reports from the U.S. Environmental Protection Agency showing that an investment of around $384 billion will be required over the next 20 years to modernize and upgrade the old, soiled and decaying U.S. water and wastewater systems. So, the regulated water industry has immense opportunities in the offing for investors willing to ride the growth.
The success story of the water utilities lies in increasing demand for fresh water due to an ever-increasing global population as well as rapid urbanization. Growing demand for fresh water – which accounts for a meager 2.5% of the world’s total water content – is boosting the prospects of these operators.
Here, let us focus on a couple of water utilities reporting this week.
SJW Corp. (SJW - Free Report) through its subsidiaries operates as a water utility company in the U.S. The company provides water services in parts of California and Texas. The company is expected to release second quarter earnings on Jul 27 after the market closes.
The company delivered a 23.81% negative surprise last quarter. SJW Corp. has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is at 41 cents.
California Water Service Group (CWT - Free Report) provides water utility and other related services in California, Washington, New Mexico, and Hawaii. The company is expected to release second-quarter earnings before the market opens on Jul 28.
The company delivered a 166.67% negative surprise last quarter. California Water Service has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is at 27 cents.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The utility sector continues with its steady run of performance, thanks to its domestic focus that insulates it from international turmoil. This is amply reflected in bullish sector projections. Q2 earnings at the utilities are expected to jump 20.9% while revenues are expected to be up 2.4% from the same period last year.
Nine out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline. The earnings growth rate of the utilities is the highest among the seven sectors which are expected to be in the positive zone this quarter. Read more details from our weekly Earnings Preview report.
The second-quarter 2016 earnings season is well underway, with nearly 25% of the S&P 500 members having released their earnings as of Jul 22. Total earnings are down 1.1% from the same period last year on 2.6% lower revenues. Overall, total S&P 500 earnings are expected to be down 3.4% on 0.5% lower revenues.
Against this backdrop, let us focus on the water utility space, which is now under public glare with reports from the U.S. Environmental Protection Agency showing that an investment of around $384 billion will be required over the next 20 years to modernize and upgrade the old, soiled and decaying U.S. water and wastewater systems. So, the regulated water industry has immense opportunities in the offing for investors willing to ride the growth.
The success story of the water utilities lies in increasing demand for fresh water due to an ever-increasing global population as well as rapid urbanization. Growing demand for fresh water – which accounts for a meager 2.5% of the world’s total water content – is boosting the prospects of these operators.
Here, let us focus on a couple of water utilities reporting this week.
SJW Corp. (SJW - Free Report) through its subsidiaries operates as a water utility company in the U.S. The company provides water services in parts of California and Texas. The company is expected to release second quarter earnings on Jul 27 after the market closes.
The company delivered a 23.81% negative surprise last quarter. SJW Corp. has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is at 41 cents.
California Water Service Group (CWT - Free Report) provides water utility and other related services in California, Washington, New Mexico, and Hawaii. The company is expected to release second-quarter earnings before the market opens on Jul 28.
The company delivered a 166.67% negative surprise last quarter. California Water Service has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter is at 27 cents.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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