California Water Service Group Beats on Both Top and Bottom Lines

California Water Service Group (NYS: CWT) filed its 10-K on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), California Water Service Group beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded significantly.


Gross margins dropped, operating margins expanded, net margins expanded.

Revenue details
California Water Service Group booked revenue of $121.5 million. The four analysts polled by S&P Capital IQ predicted sales of $116.4 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $103.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The six earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.12 for Q4 were 200% higher than the prior-year quarter's $0.04 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.6%, 130 basis points worse than the prior-year quarter. Operating margin was 9.2%, 210 basis points better than the prior-year quarter. Net margin was 4.1%, 230 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $114.2 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $538.5 million. The average EPS estimate is $1.01.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 223 members out of 234 rating the stock outperform, and 11 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 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 outperform, with an average price target of $20.40.

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The article California Water Service Group Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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, backed by a real-money portfolio. 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.

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