California Water Service Group (CWT) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - California Water Service Group (CWT) is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with a consensus outlook indicating a significant drop in earnings per share (EPS) and revenues [1][3]. Earnings Expectations - The consensus EPS estimate for California Water Service Group is $0.46, reflecting a year-over-year decrease of 34.3% [3]. - Revenues are anticipated to be $225.89 million, which is a decline of 7.5% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for California Water Service Group is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +29.50%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - California Water Service Group currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, California Water Service Group exceeded the expected EPS of $0.16 by delivering $0.22, resulting in a surprise of +37.50% [13]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [14]. Industry Comparison - American Water Works (AWK), another player in the water supply industry, is expected to report earnings of $1.49 per share for the same quarter, reflecting a year-over-year increase of 4.9% [19]. - American Water Works has a current Earnings ESP of +0.67% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of beating the consensus EPS estimate [20].