California Water Service Q3 revenue rises on rate hikes, customer growth
Overview
US water utility's Q3 revenue rose 6.7% yr/yr
Q3 diluted EPS rose to $1.05 from $1.03 a year earlier
Revenue growth driven by rate changes, new customers, and regulatory approvals, partly offset by lower usage
Outlook
Company expects to close Nevada and Oregon acquisitions in Q4 2026
Company expects to invest $228 mln in PFAS treatment and well replacement projects
Company says it has resources to finance ongoing initiatives into H1 2027
Result Drivers
RATE CHANGES AND NEW CUSTOMERS - Co said Q3 revenue growth was driven by rate changes and new customers
LOWER USAGE - Co said decline in customer water usage offset revenue increases
REGULATORY APPROVALS - Co said regulatory approvals in Washington contributed to revenue growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Operating Revenue | $332.20 mln | $332.17 mln (3 Analysts) | |
Q3 EPS | $1.05 | ||
Q3 Net Income | $65.40 mln | ||
Q3 Dividend | $0.34 |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the water & related utilities peer group is "buy"
Wall Street's median 12-month price target for California Water Service Group is $56.00, about 18.8% above its October 28 closing price of $47.15
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Oct 28 - American Water Q3 results miss on higher costs
Oct 27 - Water solutions firm Xylem Q3 revenue misses on projects timing, cautious spending
Oct 27 - Guangdong Investment 9M revenue rises on water resources strength
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)