SJW (SJW) got here out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.59 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 34.55%. 1 / 4 in the past, it was anticipated that this father or mother of San Jose Water Co. Would submit earnings of $1.18 per share when it truly produced earnings of $1.18, delivering no shock.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
SJW
The sustainability of the inventory’s rapid worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
SJW shares have added about 10.2% because the starting of the yr versus the S&P 500’s acquire of 1.3%.
What’s Subsequent for SJW?
Whereas SJW has outperformed the market up to now this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis reveals a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested ranking instrument just like the Zacks Rank, which has a powerful monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions development for SJW: unfavorable. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.44 on $156.57 million in revenues for the approaching quarter and $2.95 on $755.03 million in revenues for the present fiscal yr.
Traders must be conscious of the truth that the outlook for the trade can have a fabric affect on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Utility – Water Provide is presently within the high 32% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One other inventory from the identical trade, York Water (YORW), has but to report outcomes for the quarter ended December 2024.
This purifying and distribution firm is anticipated to submit quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -11.9%. The consensus EPS estimate for the quarter has remained unchanged during the last 30 days.
York Water’s revenues are anticipated to be $19 million, up 5% from the year-ago quarter.
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SJW Group (SJW) : Free Stock Analysis Report
The York Water Company (YORW) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
