SJW (SJW) Misses This autumn Earnings and Income Estimates

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SJW (SJW) got here out with quarterly earnings of $0.42 per share, lacking the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.46 per share a yr in the past. These figures are adjusted for non-recurring gadgets.

This quarterly report represents an earnings shock of -12.50%. 1 / 4 in the past, it was anticipated that this dad or mum of San Jose Water Co. Would submit earnings of $0.71 per share when it really produced earnings of $0.64, delivering a shock of -9.86%.

Over the past 4 quarters, the corporate has not been capable of surpass consensus EPS estimates.

SJW, which belongs to the Zacks Utility – Water Provide trade, posted revenues of $139.74 million for the quarter ended December 2021, lacking the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $135.7 million. The corporate has topped consensus income estimates simply as soon as during the last 4 quarters.

The sustainability of the inventory’s rapid worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.

SJW shares have misplaced about 11.9% for the reason that starting of the yr versus the S&P 500’s decline of -6.1%.

What’s Subsequent for SJW?

Whereas SJW has underperformed the market to date this yr, the query that involves traders’ 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 traders tackle 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 these days.

Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a powerful observe report of harnessing the facility of earnings estimate revisions.

Forward of this earnings launch, the estimate revisions development for SJW: favorable. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You may see the entire record of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.

It will likely 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 $0.09 on $118 million in revenues for the approaching quarter and $2.40 on $600.94 million in revenues for the present fiscal yr.

Traders needs to be conscious of the truth that the outlook for the trade can have a fabric affect on the efficiency of the inventory as properly. By way of the Zacks Trade Rank, Utility – Water Provide is at the moment within the backside 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.

Important Utilities (WTRG), one other inventory in the identical trade, has but to report outcomes for the quarter ended December 2021. The outcomes are anticipated to be launched on February 23.

This water utility is predicted to submit quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -6.5%. The consensus EPS estimate for the quarter has remained unchanged during the last 30 days.

Important Utilities’ revenues are anticipated to be $497 million, up 4.9% from the year-ago quarter.

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