California Water Service Group (NYSE:CWT) Misses Q3 2025 Earnings and Revenue Estimates

California Water Service Group (NYSE:CWT) released its third-quarter 2025 earnings, revealing a mixed financial performance compared to analyst expectations. While the company highlighted operational strength in its announcement, key profitability metrics fell short of market forecasts, triggering a negative response in its stock price during after-hours trading.

Earnings Performance Versus Estimates

The utility reported non-GAAP earnings per share (EPS) of $1.03 for the quarter. This figure came in below the consensus estimate of $1.23 among analysts. On the revenue front, the company posted sales of $311.2 million, which also missed the projected $324.6 million.

• Reported EPS: $1.03
• Estimated EPS: $1.23
• Reported Revenue: $311.2 million
• Estimated Revenue: $324.6 million

The dual miss on both top-line revenue and bottom-line profitability appears to be the primary driver behind the market's initial reaction.

Market Reaction and Recent Performance

The immediate market response to the earnings release was negative, with the stock declining approximately 1.63% in after-hours trading. This pullback contrasts with the stock's performance over the past month, during which it had climbed over 6.5%. The sharp reversal suggests investors were disappointed that the company's results did not meet the heightened expectations that had likely been building.

• Post-Earnings Reaction: -1.63%
• One-Month Performance (prior to earnings): +6.5%

This pattern indicates that the earnings report served as a catalyst for profit-taking, erasing a portion of the recent gains.

Press Release Summary

The company's press release emphasized its "strong financial results" for the third quarter. As a leading water utility serving multiple states, California Water Service Group typically focuses on the stability of its regulated operations and its long-term infrastructure investments. The announcement underscored its position as a essential service provider, a characteristic that generally lends consistency to its financial performance, though this quarter's results deviated from analyst models.

Forward-Looking Analyst Estimates

Looking ahead, Wall Street has already established expectations for the company's upcoming performance. For the next quarter (Q4 2025), analysts are forecasting an EPS of $0.36 on sales of $255.5 million. For the full 2025 fiscal year, the consensus sales estimate stands at $1.03 billion.

• Q4 2025 EPS Estimate: $0.36
• Q4 2025 Sales Estimate: $255.5 million
• Full-Year 2025 Sales Estimate: $1.03 billion

The press release did not provide a specific company outlook to compare against these analyst projections. The absence of formal guidance is a common practice for many utilities and is not inherently positive or negative, but it leaves investors to rely solely on external estimates.

For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data on the CWT earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The analysis is based on publicly available data and should not be taken as a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.