SJW (SJW) got here out with quarterly earnings of $0.92 per share, lacking the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.38 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -1.08%. 1 / 4 in the past, it was anticipated that this mum or dad of San Jose Water Co. Would put up earnings of $0.71 per share when it really produced earnings of $0.69, delivering a shock of -2.82%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
SJW, which belongs to the Zacks Utility – Water Provide business, posted revenues of $165.86 million for the quarter ended September 2020, lacking the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $114 million. The corporate has topped consensus income estimates two occasions during the last 4 quarters.
The sustainability of the inventory’s speedy worth motion primarily based on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
SJW shares have misplaced about 9.8% for the reason that starting of the yr versus the S&P 500’s acquire of 4.3%.
What’s Subsequent for SJW?
Whereas SJW has underperformed the market thus far this yr, 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 deal with 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 exhibits a powerful correlation between near-term inventory actions and tendencies 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 document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for SJW was blended. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out consistent with the market within the close to future. You’ll be able to see the entire checklist of right this moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.30 on $131.76 million in revenues for the approaching quarter and $2.01 on $560.95 million in revenues for the present fiscal yr.
Traders needs to be conscious of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Utility – Water Provide is at present within the high 45% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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SJW Group (SJW): Free Inventory Evaluation Report
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