California Water Service (CWT) Misses Q2 EPS by 48c, Revenues Miss

California Water Service (NYSE: CWT) reported Q2 EPS of $0.11, $0.48 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $175.48 million versus the consensus estimate of $228.74 million.

According to President and Chief Executive Officer Martin A. Kropelnicki, a primary focus for the Company in recent weeks has been advocating for a favorable outcome on a proposal being considered by the CPUC that would eliminate the WRAM, which decouples water sales from revenues.

“Clearly, the delay in our California GRC significantly impacted our financial results in the first half of this year. While we continue to await that decision, we are working with other interested parties to support decoupling water sales from revenue. The CPUC’s current proposal would damage the state’s policy goals for water use efficiency based on an incomplete and insufficient analysis. A full and fair examination of the proposal would show that eliminating decoupling would reduce conservation and increase water rates for low-income customers, so it is critical for us to raise awareness on the issue,” Kropelnicki said.

In addition to advocating for decoupling, which has been used for decades to promote efficiency in the electric and natural gas industries, the Company remained focused on completing critical infrastructure improvements, integrating the newly acquired water systems in the State of Washington, and responding to the coronavirus pandemic.

“It has certainly been a challenging time, but I’m proud of the progress we’ve made on improving our water systems and integrating our new Washington systems. But above all, we’ve made it a priority to do everything we possibly can to keep our employees healthy and take care of our customers during this unprecedented health crisis,” he said.

For earnings history and earnings-related data on California Water Service (CWT) click here.

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