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What's in Store for California Water (CWT) in Q4 Earnings?

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California Water Service Group (CWT - Free Report) is scheduled to release fourth-quarter 2023 earnings on Feb 29 before market close. The company delivered a positive earnings surprise of 11.11% in the last quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

During the fourth quarter, California Water is expected to have benefited from new rate implementations in its service territories. Contributions from acquired assets also boosted earnings in the fourth quarter.

Higher interest expenses are likely to have adversely impacted earnings in the fourth quarter due to still-high interest rates, an increase in short-term borrowing rates and higher outstanding line of credit balances.

Expectation

The Zacks Consensus Estimate for California Water’s earnings is pegged at $1.5 per share, implying a year-over-year increase of 328.57%.

The Zacks Consensus Estimate for fourth-quarter sales stands at $277.7 million, suggesting an increase of 38.23% from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for CWT this time. 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. However, that is not the case here, as you will see below.

Earnings ESP: CWT has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, CWT carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

American Electric Power (AEP - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter 2023 earnings on Feb 27 before market open. It has an Earnings ESP of +2.36% and carries a Zacks Rank of 3 at present.

Sempra Energy (SRE - Free Report) is likely to pull off an earnings beat when it reports fourth-quarter 2023 earnings on Feb 27 before market open. It has an Earnings ESP of +0.29% and a Zacks Rank of 3 at present.

Consolidated Water (CWCO - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter earnings soon. It has an Earnings ESP of +4.44% and carries a Zacks Rank of 2 at present.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


 

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