NASDAQ$HTO

H2O America · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

SJW Group's financial performance increased due to cumulative water rate increases and the net recognition of balancing and memorandum accounts and regulatory mechanisms.

SJW Group reported increased operating revenue and net income for the fourth quarter of 2022, primarily driven by the net recognition of balancing and memorandum accounts and regulatory mechanisms and cumulative water rate increases. The company's 2022 diluted earnings per share increased by 20% over the prior year.

  • Operating revenue increased by $31.7 million compared to the same period in 2021, reaching $171.4 million.
  • Net recognition of balancing and memorandum accounts and regulatory mechanisms contributed $21.0 million to the revenue increase.
  • Cumulative water rate increases added $14.5 million to the revenue.
  • Operating expenses increased to $121.0 million, compared to $108.1 million in the same period of 2021.

Headline financials

Total Revenue

$171M

Previous: $140M+22.6%
EPS (adj)

$1.09

Previous: $0.42+159.5%
Net Income

$33.5M

Previous: $18M+85.9%
Operating Income

$50.4M

Previous: $31.7M+59.1%
Gross Profit

$108M

Previous: $80.6M+34.2%
Cash & Equivalents

$12.3M

Previous: $10.9M+13.2%
Total Assets

$3.76B

Previous: $3.49B+7.5%
Stock-Based Comp

$800K

Previous: $1.05M-23.4%

Revenue & EPS history

SJW Group · Revenue · Quarterly

$171M

Q4 2022+22.6%vs Q4 2021
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

SJW Group's 2023 guidance assumes constructive outcomes in the SJWC Cost of Capital proceeding, a GRC in Maine, and a Water Infrastructure and Conservation Adjustment in Connecticut. It also assumes average weather conditions in Maine and Texas, and revenue protection in California and Connecticut.

Tailwinds

  • Net income per diluted common share of $2.40 to $2.50.
  • Non-linear long-term diluted EPS growth of 5% to 7%, anchored off of 2022 diluted EPS of $2.43.
  • Regulated infrastructure investments of approximately $255 million in 2023.
  • New rates in California will increase annual revenues in 2023 by $18.4 million.
  • The rate increases in Maine are retroactive back to January 1, 2023, and authorize a $692,000 increase in annual revenues.

Headwinds

  • Guidance is subject to risks and uncertainties.
  • Factors outlined in the “Forward Looking Statements” of this release.
  • The “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
  • Outcomes in the SJWC Cost of Capital proceeding in California currently in progress.
  • A GRC in Maine’s Biddeford-Saco Division scheduled to be filed in the first quarter of 2023.

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 Q4 2022

Historical avgQ4 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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