Huntington Sec Weighs in on H2O America FY2026 Earnings

Key Points

• Huntington Securities initiated coverage with a “Strong-Buy” rating and forecast H2O America earnings of $3.10 per share for fiscal 2026, compared with the $2.93 consensus estimate. It projects $2.87 EPS for fiscal 2027 and $3.53 for fiscal 2028.
• H2O America’s latest quarterly earnings came in at $1.04 per share, slightly below the $1.06 consensus, on revenue of $250.23 million. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $64.50.
• The company declared a quarterly dividend of $0.44 per share, equivalent to $1.76 annually and a 3.0% yield. Separately, H2O America priced a $325 million equity-unit offering that could fund acquisitions, capital spending and debt repayment, but may increase financing obligations and create future share dilution.

H2O America (NASDAQ:HTO - Free Report) - Analysts at Huntington Sec issued their FY2026 earnings estimates for H2O America in a report released on Wednesday, October 28th. Huntington Sec analyst M. Gaugler anticipates that the utilities provider will earn $3.10 per share for the year. Huntington Sec currently has a "Strong-Buy" rating on the stock. The consensus estimate for H2O America's current full-year earnings is $2.93 per share. Huntington Sec also issued estimates for H2O America's Q4 2026 earnings at $0.81 EPS, Q1 2027 earnings at $0.48 EPS, Q2 2027 earnings at $0.63 EPS, Q3 2027 earnings at $1.07 EPS, Q4 2027 earnings at $0.69 EPS, FY2027 earnings at $2.87 EPS, Q1 2028 earnings at $0.54 EPS, Q2 2028 earnings at $0.80 EPS, Q3 2028 earnings at $1.36 EPS and FY2028 earnings at $3.53 EPS.

Several other equities analysts have also recently issued reports on the company. Robert W. Baird boosted their price objective on H2O America from $67.00 to $72.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. BTIG Research reaffirmed a "buy" rating and set a $65.00 target price on shares of H2O America in a report on Tuesday, October 20th. Weiss Ratings lowered H2O America from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday. Seaport Research Partners reiterated a "buy" rating and set a $67.00 price target on shares of H2O America in a research report on Wednesday, August 12th. Finally, Wall Street Zen raised H2O America from a "sell" rating to a "hold" rating in a report on Sunday, August 16th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $64.50.

H2O America Price Performance

Shares of HTO opened at $58.57 on Friday. The business's 50-day moving average is $61.17 and its two-hundred day moving average is $58.77. The company has a market capitalization of $2.83 billion, a P/E ratio of 22.97, a P/E/G ratio of 6.80 and a beta of 0.33. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.67 and a current ratio of 1.90. H2O America has a fifty-two week low of $43.75 and a fifty-two week high of $67.09.

H2O America (NASDAQ:HTO - Get Free Report) last issued its earnings results on Monday, October 26th. The utilities provider reported $1.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.06 by ($0.02). The business had revenue of $250.23 million for the quarter. H2O America had a return on equity of 6.03% and a net margin of 12.51%.

Hedge Funds Weigh In On H2O America

A number of hedge funds have recently bought and sold shares of the business. Versant Capital Management Inc increased its stake in H2O America by 22.0% during the 2nd quarter. Versant Capital Management Inc now owns 980 shares of the utilities provider's stock worth $60,000 after buying an additional 177 shares in the last quarter. Bessemer Group Inc. lifted its position in shares of H2O America by 44.6% in the first quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider's stock valued at $39,000 after acquiring an additional 204 shares in the last quarter. Pinnacle Wealth Planning Services Inc. lifted its position in shares of H2O America by 35.8% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 781 shares of the utilities provider's stock valued at $48,000 after acquiring an additional 206 shares in the last quarter. Allworth Financial LP lifted its position in shares of H2O America by 54.2% in the second quarter. Allworth Financial LP now owns 683 shares of the utilities provider's stock valued at $42,000 after acquiring an additional 240 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of H2O America by 76.2% in the first quarter. EverSource Wealth Advisors LLC now owns 911 shares of the utilities provider's stock valued at $53,000 after acquiring an additional 394 shares in the last quarter. Hedge funds and other institutional investors own 84.29% of the company's stock.

H2O America Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 9th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $1.76 dividend on an annualized basis and a yield of 3.0%. H2O America's dividend payout ratio is presently 69.02%.

H2O America News Roundup

Here are the key news stories impacting H2O America this week:

• Positive Sentiment: Huntington Securities initiated coverage with a “Strong-Buy” rating and projected earnings of $3.10 per share for fiscal 2026, $2.87 for fiscal 2027 and $3.53 for fiscal 2028. The estimates suggest earnings growth over the longer term. Huntington Securities analyst coverage
• Positive Sentiment: H2O America priced a $325 million offering of equity units, with estimated net proceeds of approximately $315.3 million. Management may use the funds for acquisitions, capital expenditures and debt repayment, potentially supporting expansion and balance-sheet flexibility. H2O America announces pricing of equity-unit offering
• Neutral Sentiment: The equity units will provide a 7.750% annual distribution and are expected to be listed on Nasdaq, which could improve investor access and liquidity. However, the securities combine debt-like notes with future stock-purchase contracts, making the financing structure more complex.
• Negative Sentiment: The offering creates potential dilution because holders must ultimately purchase a variable number of H2O America common shares by November 2029. The associated 5.300% senior notes also increase the company’s financing obligations, which may pressure the stock despite the planned use of proceeds for growth and debt management. H2O America prices $325 million public offering

H2O America Company Profile

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