SJW (SJW) got here out with quarterly earnings of $0.60 per share, lacking the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.69 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of -4.76%. 1 / 4 in the past, it was anticipated that this guardian of San Jose Water Co. Would put up earnings of $0.12 per share when it really produced earnings of $0.12, delivering no shock.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
SJW, which belongs to the Zacks Utility – Water Provide trade, posted revenues of $152.24 million for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 1.10%. This compares to year-ago revenues of $147.21 million. The corporate has topped consensus income estimates two instances during the last 4 quarters.
The sustainability of the inventory’s speedy value motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
SJW shares have misplaced about 2.2% because the starting of the 12 months versus the S&P 500’s achieve of 17.2%.
What’s Subsequent for SJW?
Whereas SJW has underperformed the market to this point this 12 months, 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 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 currently.
Empirical analysis reveals a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a powerful observe report of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for SJW was unfavorable. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #5 (Robust 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 whole record of at the moment’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 12 months change within the days forward. The present consensus EPS estimate is $0.78 on $168.91 million in revenues for the approaching quarter and $1.95 on $572.2 million in revenues for the present fiscal 12 months.
Traders must be aware of the truth that the outlook for the trade can have a cloth influence on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Utility – Water Provide is at present within the backside 24% 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.
5 Shares Set to Double
Every was hand-picked by a Zacks skilled because the #1 favourite inventory to realize +100% or extra in 2021. Every comes from a distinct sector and has distinctive qualities and catalysts that would gasoline distinctive development. Many of the shares on this report are flying below Wall Avenue radar, which offers an incredible alternative to get in on the bottom ground.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.