California Water Service Group
The 10-second takeaway
For the quarter ended June 30 (Q2), California Water Service Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share dropped.
Margins contracted across the board.
California Water Service Group tallied revenue of $154.6 million. The two analysts polled by S&P Capital IQ looked for a top line of $145.7 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $143.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.28. The five earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.28 for Q2 were 9.7% lower than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 47.7%, 200 basis points worse than the prior-year quarter. Operating margin was 19.6%, 40 basis points worse than the prior-year quarter. Net margin was 8.7%, 30 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $181.3 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $580.2 million. The average EPS estimate is $0.85.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 223 members out of 233 rating the stock outperform, and 10 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give California Water Service Group a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on California Water Service Group is hold, with an average price target of $21.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool recommends California Water Service Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.