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California Water's (CWT) Q3 Earnings & Revenues Beat Mark

California Water (CWT) posts better-than-expected results for the third quarter. However, both the top and the bottom line decline year over year.

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This story originally appeared on Zacks

California Water Service CWT recorded third-quarter 2021 earnings of $1.20 per share, outperforming the Zacks Consensus Estimate of 79 cents by 51.9%.The bottom line, however, declined 38.1% from the year-ago quarter’s tally of $1.94.

- Zacks

Total Revenues

Operating revenues of $256.7 million beat the Zacks Consensus Estimate of $252 million by 1.9%. However, the top line fell 15.6% from $304.1 million in the prior-year quarter.

 

Operational Update

In the quarter under review, California Water’s total operating expenses were $185.6 million, down 6.3% year over year. This decline is primarily owed to fall in water-production costs and other operations costs.



In the third quarter, net operating income was $71.2 million, down 32.9% from the year-ago quarter’s reading of $106.1 million.



Net interest expenses were $11.2 million, up 7.1% year over year.

Financial Update

As of Sep 30, 2021, the company had cash and cash equivalents of $140.4 million compared with $44.6 million as of Dec 31, 2020.



As of Sep 30, 2021, the company’s net long-term debt was $1,059.7 million, up from $781.1 million as of Dec 31, 2020.

Strategic Updates

The company filed for the California general rate case in July. In the reported quarter, the utility filed for the Rainier View acquisition, decision of which is awaited in second-quarter 2022.



The company’s four acquisitions are pending to be closed following regulatory approvals, which will add up to 3,400 water connections and up to 4,700 wastewater connections.

Guidance

The company reaffirmed its capital expenditure in the range of $270-$300 million for 2021. The midpoint of its capital expenditure planned for 2022, 2023 and 2024 is $355 million, $360 million and $365 million, respectively.

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 States Water Company AWR is scheduled to announce third-quarter 2021 results on Nov 1. The Zacks Consensus Estimate for earnings per share is pegged at 77 cents.



Essential Utilities Inc. WTRG is scheduled to announce third-quarter 2021 results on Nov 1. The Zacks Consensus Estimate for earnings per share is pegged at 22 cents.



American Water Works Company, Inc. AWK is set to release third-quarter 2021 results on Nov 2. The Zacks Consensus Estimate for earnings per share is pegged at $1.52.



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