Yahoo Finance Broker Revenue Forecasts For California Water Service Group (NYSE:CWT) Are Surging Higher
California Water Service Group (NYSE:CWT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 7.0% to US$48.05 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
After the upgrade, the four analysts covering California Water Service Group are now predicting revenues of US$1.0b in 2024. If met, this would reflect a meaningful 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 4.5% to US$2.61. Prior to this update, the analysts had been forecasting revenues of US$937m and earnings per share (EPS) of US$2.39 in 2024. The forecasts seem more optimistic now, with a nice increase in revenue and a small increase to earnings per share estimates.
Check out our latest analysis for California Water Service Group
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that California Water Service Group's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that California Water Service Group is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at California Water Service Group.
Analysts are definitely bullish on California Water Service Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
