Earnings Performance - California Water Service Group (CWT) reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.52 per share a year ago, representing an earnings surprise of 120% [1] - The company posted revenues of $222.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.86%, compared to year-ago revenues of $214.51 million [2] Stock Performance and Outlook - California Water Service Group shares have increased by approximately 1.4% since the beginning of the year, slightly outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $179.52 million, and for the current fiscal year, it is $2.32 on revenues of $934.9 million [7] Industry Context - The Utility - Water Supply industry, to which California Water Service Group belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Core Viewpoint - California Water Service Group reported strong operational and financial performance for 2024, highlighting significant revenue growth and capital investments aimed at enhancing water supply sustainability [3][6]. Financial Results - Q4 2024 operating revenue reached $222.2 million, up from $214.5 million in Q4 2023, marking an increase of $7.7 million [7]. - Full year 2024 operating revenue was $1.037 billion, compared to $794.6 million in 2023, reflecting a $242.4 million increase [6][26]. - Diluted earnings per share for 2024 were $3.25, a significant rise from $0.91 in 2023 [6][26]. - Net income attributable to the Group for Q4 2024 was $19.7 million, down from $30.1 million in Q4 2023 [7]. - Full year net income attributable to the Group was $190.8 million, compared to $51.9 million in 2023 [6][26]. Capital Investment - The company achieved a record capital investment of $471.0 million in water system infrastructure for 2024, a 23% increase from the previous year [6][10]. - The California Public Utilities Commission (CPUC) authorized Cal Water to issue up to $1.3 billion in new debt and equity securities [9]. Regulatory Activity - The 2024 General Rate Case (GRC) was filed, proposing over $1.6 billion in investments from 2025-2027 to enhance water supply reliability and sustainability [11][13]. - Proposed rate adjustments include an increase of $140.6 million (17.1%) in 2026, $74.2 million (7.7%) in 2027, and $83.6 million (8.1%) in 2028 [11]. Emergency Response and Preparedness - The company maintained emergency response leadership throughout 2024, conducting training and drills to prepare for potential emergencies [17]. - Investments of nearly $55 million over the past five years have been made to mitigate wildfire risks through infrastructure upgrades and strategic management [19].