NASDAQ$HTO

H2O America · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

SJW Group's financial performance was impacted by regulatory changes and delays, but the company reaffirmed its 2022 guidance and declared a dividend.

SJW Group reported a decrease in net income and diluted earnings per share for the second quarter of 2022, primarily due to regulatory changes and delays. However, the company reaffirmed its 2022 earnings guidance and declared a quarterly dividend of $0.36 per share.

  • Net income decreased to $11.6 million in Q2 2022, compared to $20.8 million in the same period in 2021.
  • Diluted earnings per share were $0.38 in Q2 2022, down from $0.69 in Q2 2021.
  • Revenues decreased to $149.0 million in Q2 2022, compared to $152.2 million in the same period in 2021.
  • The company reaffirmed its 2022 guidance range of $2.30 to $2.40 per diluted share.

Headline financials

Total Revenue

$149M

Previous: $152M-2.1%
EPS (adj)

$0.38

Previous: $0.69-44.9%
Capital Expenditures

-$546K

Previous: -$230K-137.4%
Free Cash Flow

$11M

Previous: $20.5M-46.4%
Net Income

$11.6M

Previous: $20.8M-44.4%
Operating Income

$26.4M

Previous: $32.6M-19.1%
Gross Profit

$63M

Previous: $63.5M-0.9%
Cash & Equivalents

$12M

Previous: $25.4M-52.6%
Total Assets

$3.54B

Previous: $3.41B+3.9%
Stock-Based Comp

$1.04M

Previous: $791K+31.6%

Revenue & EPS history

SJW Group · Revenue · Quarterly

$149M

Q2 2022-2.1%vs Q2 2021
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

SJW Group reaffirmed its 2022 earnings guidance of $2.30 to $2.40 per diluted common share and regulated infrastructure investments of approximately $223 million in 2022.

Tailwinds

  • Settled or anticipated outcomes for rate cases.
  • SJWC Cost of Capital (“CoC”) proceeding in California currently in process.
  • Average weather conditions in Connecticut, Texas and Maine.
  • Revenue protections in California.
  • No impact from water production mix.

Headwinds

  • Delays in SJWC’s GRC and CoC proceedings may affect quarterly and 2022 results depending on the timing and results of the final decisions.
  • The effect of water, utility, environmental and other governmental policies and regulations, including actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures and other decisions.
  • Changes in demand for water and other services.
  • The impact of the Coronavirus (“COVID-19”) pandemic on our business operation and financial results.
  • Unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.5%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.4%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+13.6%

Q3 2016

Best reaction

-8.3%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-3.3%-2.4%
Q3 2025-3.4%-9.4%-9.2%
Q1 2025+6.1%+3.2%-1.8%
Q4 2024-1.9%+2.2%+0.6%
Q3 2024-0.4%-2.7%-2.0%
Q2 2024+5.6%+3.5%-0.2%
Q1 2024-3.0%-1.2%+0.4%
Q4 2023-3.1%-4.8%-7.0%
Q3 2023+6.5%+10.8%+9.8%
Q2 2023-1.7%-1.9%-6.3%
Q1 2023-0.3%+1.0%+0.8%
Q4 2022+0.7%+1.1%-1.2%
Q3 2022+7.1%+5.9%+15.1%
Q2 2022+0.8%+2.7%+1.5%
Q1 2022-2.3%-5.7%-1.6%
Q4 2021+1.2%+0.4%+5.6%
Q3 2021-3.3%+3.5%-2.3%
Q2 2021+1.6%+2.2%+1.0%
Q1 2021-1.5%-0.5%-2.2%
Q4 2020-2.1%-3.9%-12.8%
Q3 2020-1.6%+2.3%+4.1%
Q2 2020+9.5%+3.9%-2.4%
Q1 2020-2.6%-1.7%+8.5%
Q4 2019-6.9%-7.9%-19.3%
Q3 2019-1.1%-2.9%-3.2%
Q2 2019-0.3%+0.4%+1.0%
Q1 2019-1.0%-0.6%+2.8%
Q4 2018+0.1%+1.0%+3.1%
Q3 2018+3.3%+2.5%+5.9%
Q2 2018-2.7%-4.1%-14.1%
Q1 2018+6.4%+7.9%+10.9%
Q4 2017+6.0%+5.4%-3.1%
Q3 2017-0.4%-2.2%+6.5%
Q2 2017-4.3%+4.2%+8.0%
Q1 2017-4.2%-5.4%-7.5%
Q4 2016-1.9%-1.9%-2.4%
Q3 2016+13.6%+12.8%+21.6%
Q2 2016+3.0%+1.1%+9.3%
Q1 2016-8.3%
Q4 2015+5.5%
Q3 2015-3.1%
Q2 2015+0.5%
Q1 2015-4.1%
Q4 2014-5.7%
Q3 2014+2.9%
Q2 2014-0.3%
Q1 2014-0.8%
Q4 2013+4.8%
Q3 2013-6.0%
Q2 2013+0.9%
Q1 2013-0.9%
Q4 2012-2.0%
Q3 2012-0.1%
Q2 2012+1.9%
Q1 2011+0.0%
Q1 2012+0.9%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2010+6.9%
Q3 2011+6.9%
Q2 2011+2.5%
Q2 2010+2.5%
Q4 2010+2.5%
Q1 2010+3.7%

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