NASDAQ$HTO

H2O America · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a decrease in net income primarily driven by the delayed decision in SJWC's 2022 GRC proceeding and higher production costs in 2023.

SJW Group's fourth-quarter results saw a decrease in net income, primarily due to the delayed decision in San Jose Water Company's 2022 General Rate Case (GRC) proceeding and increased production costs. While operating revenues remained relatively stable, operating expenses increased, impacting overall profitability.

  • Net income for Q4 2023 was $18.9 million, or $0.59 per diluted share, a 43% decrease compared to the same quarter last year.
  • Operating revenue for Q4 2023 was $171.3 million, a slight decrease compared to $171.4 million for the same quarter last year.
  • Operating expenses for Q4 2023 increased by 11% to $134.8 million, driven by higher water production expenses.
  • The company invested $272 million in infrastructure and water supply in 2023, exceeding its capital expenditures guidance.

Headline financials

Total Revenue

$171M

Previous: $171M-0.0%
EPS (adj)

$0.59

Previous: $1.09-45.9%
Effective Consolidated Income Tax Rate

9.0%

No prior period
Water Production Expenses

$0.00

No prior period
Administrative and General Expenses

$0.00

No prior period
Depreciation and Amortization

$0.00

No prior period
Net Income

$18.9M

Previous: $33.5M-43.4%
Operating Income

$36.5M

Previous: $50.4M-27.6%
Gross Profit

$79.7M

Previous: $108M-26.3%
Stock-Based Comp

$1.07M

Previous: $800K+33.9%

Revenue & EPS history

SJW Group · Revenue · Quarterly

$171M

Q4 2023-0%vs Q4 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

SJW Group anticipates net income per diluted common share to be between $2.68 and $2.78, and regulated infrastructure investments of approximately $332 million in 2024.

Tailwinds

  • Net income per diluted common share of $2.68 to $2.78.
  • Regulated infrastructure investments of approximately $332 million in 2024
  • Company reiterate non-linear long-term diluted EPS growth of 5% to 7%, anchored off 2022's diluted EPS of $2.43.
  • Approved agreement, MWC annual revenues will increase by $2.6 million, or 17.6%, effective January 1, 2024.
  • On January 1, 2024, new rates went into effect that included a WCCM-adjusted return on equity (ROE) of 10.01%

Headwinds

  • The company's adjustment to income tax reserves in 2023 resulted in an increase of $0.14 per diluted share.
  • Guidance is subject to risks and uncertainties, including factors outlined in the “Forward Looking Statements” of this release
  • Legislative, and general market and economic developments.
  • Changes in general economic, political, business and financial market conditions
  • Catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences

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 2023

Historical avgQ4 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro