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California Water (CWT) Earnings & Revenues Beat Mark in Q2

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California Water Service (CWT - Free Report) recorded second-quarter 2021 earnings of 75 cents per share, outperforming the Zacks Consensus Estimate of 37 cents by 102.7%.

The bottom line also improved 581.8% from the year-ago quarter’s tally of 11 cents. The rise can be primarily attributed to the rate increases.

Total Revenues

Operating revenues of $213.1 million beat the Zacks Consensus Estimate of $187 million by 14%. The top line also improved 21.4% from $175.5 million in the prior-year quarter.

Operational Update

In the quarter under review, California Water’s total operating expenses were $170.9 million, up 4.8% year over year.

In the second quarter, net operating income was $42.2 million, up 238.1% from the year-ago quarter’s reading of $12.5 million.

Net interest expenses were $10.8 million, up 2.6% year over year.

Financial Update

As of Jun 30, 2021, the company had cash and cash equivalents of $66.5 million compared with $44.6 million as of Dec 31, 2020.

As of Jun 30, 2021, the company’s net long-term debt was $1,059.9 million, up from $781.1 million as of Dec 31, 2020.

Strategic Updates

In May, the utility’s subsidiary Texas Water Service announced that it now owns the majority of BVRT Utility Holding Company. In the same month, it’sanother unit Hawaii Water Service closed the buyout of Kapalua Water Company and Kapalua Waste Treatment Company, and in June, it signed an agreement to acquire the assets of HOH Utilities Company.

Guidance

The company reaffirmed its capital expenditure in the range of $270-$300 million for 2021.

Zacks Rank

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

Upcoming Results

American Water Works Company, Inc. (AWK - Free Report) is set to release second-quarter 2021 results on Aug 2. The Zacks Consensus Estimate for earnings per share is pegged at $1.08.

American States Water Company (AWR - Free Report) is scheduled to announce second-quarter 2021 results on Aug 2. The Zacks Consensus Estimate for earnings per share is pegged at 70 cents.

Essential Utilities Inc. (WTRG - Free Report) is scheduled to announce second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at 27 cents.