Back to top

Image: Bigstock

California Water Service Group (CWT) Up 1.1% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for California Water Service Group (CWT - Free Report) . Shares have added about 1.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is California Water Service Group due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for California Water Service Group before we dive into how investors and analysts have reacted as of late.

California Water Service Group Q4 Earnings & Revenues Miss Estimates

California Water Service Group recorded fourth-quarter 2025 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 47.2%. The metric also missed the year-ago quarter’s 33 cents per share by 42.4%.

CWT’s Total Revenues in Q4

Operating revenues totaled $219.9 million, which lagged the Zacks Consensus Estimate of $232 million by 5.2%. The top line also dropped 0.9% from $222 million recorded in the prior-year quarter.

CWT’s Operational Update

Total operating expenses were $194.4 million, up 2.4% from the year-ago quarter’s level of $189.9 million. This year-over-year rise was due to higher administrative and general expenses and a hike in other operations expenses.

Net operating income was $25.6 million, down 20.7% from the year-ago quarter’s reported figure of $32.3 million.

Net interest expenses were $18.3 million, up 16.6% from the prior-year quarter’s figure of $15.7 million.

The company completed rate cases in Hawaii and Washington, adding $5.1 million in authorized revenues.

CWT’s Financial Update

As of Dec. 31, 2025, CWT had cash and cash equivalents of $51.8 million compared with $50.1 million as of Dec. 31, 2024.

Its net long-term debt totaled $1,471.9 million as of Dec. 31, 2025, compared with $1,104.6 million as of Dec. 31, 2024.

The company’s management approved an increase in the dividend rate. The annual dividend rate was increased 10.71%, or 12 cents, to $1.24 per common share, including a one-time special dividend of 4 cents.

The company Invested $517 million in water system infrastructure in 2025, a 9.8% increase compared with water system infrastructure investments in 2024.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 8.7% due to these changes.

VGM Scores

Currently, California Water Service Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, California Water Service Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

California Water Service Group is part of the Zacks Utility - Water Supply industry. Over the past month, American Water Works (AWK - Free Report) , a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended December 2025 more than a month ago.

American Water Works reported revenues of $1.27 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $1.24 for the same period compares with $1.22 a year ago.

American Water Works is expected to post earnings of $1.13 per share for the current quarter, representing a year-over-year change of +7.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

American Water Works has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in