SJW (SJW) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for SJW despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - SJW is expected to report quarterly earnings of $0.35 per share, reflecting a year-over-year decrease of 2.8$155.37 million, an increase of 4% from the previous year [3]. - The consensus EPS estimate has been revised down by 2.68% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading indicates a likely earnings beat, particularly when combined with a strong Zacks Rank [8][10]. - For SJW, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +7.14% and a Zacks Rank of 2, suggesting a high probability of beating the consensus EPS estimate [11]. Historical Performance - SJW has a history of exceeding consensus EPS estimates, having beaten expectations in three out of the last four quarters, including a notable surprise of +34.55% in the last reported quarter [12][13]. Conclusion - SJW is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings results when making investment decisions [14][16].