Zacks Research Has Pessimistic Outlook of CWT Q3 Earnings

Key Points

• Zacks Research has revised its Q3 2025 earnings estimate for California Water Service Group (CWT), lowering it from $1.17 to $1.13 per share.
• The company reported a Q2 earnings beat with $0.71 EPS, exceeding analyst expectations of $0.46 and showing an 8.5% revenue increase year-over-year.
• A dividend of $0.30 will be paid on August 22nd, representing an annualized yield of 2.6% and indicating a dividend payout ratio of 52.40%.

California Water Service Group (NYSE:CWT - Free Report) - Equities researchers at Zacks Research lowered their Q3 2025 earnings estimates for California Water Service Group in a report issued on Thursday, August 14th. Zacks Research analyst Team now forecasts that the utilities provider will post earnings per share of $1.13 for the quarter, down from their prior forecast of $1.17. The consensus estimate for California Water Service Group's current full-year earnings is $3.15 per share. Zacks Research also issued estimates for California Water Service Group's FY2025 earnings at $2.44 EPS, Q1 2026 earnings at $0.23 EPS, Q3 2026 earnings at $1.23 EPS, FY2026 earnings at $2.53 EPS, Q1 2027 earnings at $0.25 EPS and FY2027 earnings at $2.71 EPS.

California Water Service Group (NYSE:CWT - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The utilities provider reported $0.71 EPS for the quarter, beating analysts' consensus estimates of $0.46 by $0.25. California Water Service Group had a net margin of 13.71% and a return on equity of 8.28%. The business had revenue of $264.95 million for the quarter, compared to analyst estimates of $238.20 million. During the same quarter last year, the business earned $0.70 earnings per share. The business's revenue for the quarter was up 8.5% on a year-over-year basis.

Several other research firms have also commented on CWT. Wells Fargo & Company cut their target price on shares of California Water Service Group from $59.00 to $55.00 and set an "overweight" rating for the company in a research note on Friday, August 1st. Wall Street Zen raised shares of California Water Service Group from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd. One research analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $56.00.

California Water Service Group Price Performance

CWT stock traded up $0.7990 on Monday, hitting $47.5690. 290,725 shares of the company's stock traded hands, compared to its average volume of 342,090. California Water Service Group has a 1-year low of $41.64 and a 1-year high of $56.25. The stock has a market cap of $2.83 billion, a price-to-earnings ratio of 20.77, a P/E/G ratio of 2.23 and a beta of 0.66. The stock has a fifty day moving average of $46.03 and a 200-day moving average of $46.90. The company has a current ratio of 0.53, a quick ratio of 0.50 and a debt-to-equity ratio of 0.67.

Institutional Trading of California Water Service Group

Hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted its position in shares of California Water Service Group by 109.9% in the second quarter. EverSource Wealth Advisors LLC now owns 697 shares of the utilities provider's stock worth $32,000 after purchasing an additional 365 shares in the last quarter. Versant Capital Management Inc increased its holdings in California Water Service Group by 751.3% in the first quarter. Versant Capital Management Inc now owns 681 shares of the utilities provider's stock worth $33,000 after buying an additional 601 shares during the last quarter. Banque Cantonale Vaudoise bought a new position in California Water Service Group during the first quarter valued at approximately $34,000. Whittier Trust Co. bought a new position in California Water Service Group during the second quarter valued at approximately $36,000. Finally, Signaturefd LLC raised its position in California Water Service Group by 130.1% during the second quarter. Signaturefd LLC now owns 1,397 shares of the utilities provider's stock valued at $64,000 after acquiring an additional 790 shares in the last quarter. 82.78% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at California Water Service Group

In other news, Director Lester A. Snow sold 1,200 shares of the stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $46.51, for a total value of $55,812.00. Following the completion of the sale, the director directly owned 26,349 shares of the company's stock, valued at $1,225,491.99. This represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.77% of the stock is currently owned by company insiders.

California Water Service Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Monday, August 11th will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, August 11th. California Water Service Group's dividend payout ratio (DPR) is 52.40%.

California Water Service Group Company Profile

California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. The company is involved in the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as for fire protection services.