H2O America (NASDAQ:HTO) is preparing to report its quarterly results on Monday, October 27, 2025. Here’s a quick overview of what investors should consider before the announcement.
Analysts expect H2O America to be a earnings per share (EPS) of $1.17.
H2O America’s announcement is highly anticipated, with investors looking for news of beat expectations and favorable expectations for the next quarter.
For new investors, it’s worth noting that guidance can be a key determinant of stock price movements.
Past earnings performance
Last quarter, the company beat earnings per share by $0.04, which was followed by a 1.51% increase in the stock price the next day.
Here’s a look at H2O America’s past performance and resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS estimate | 0.71 | 0.37 | 0.55 | 1.17 |
| EPS Really | 0.75 | 0.50 | 0.74 | 1.18 |
| Price change % | 2.00 | 6:00 am | -2.00 | -3.00 |
H2O America stock price analysis
Shares of H2O America were trading at $50.74 on October 23. Over the past 52-week period, shares are down 12.24%. Given that these returns are generally negative, long-term shareholders will likely be somewhat dismayed when these earnings figures are announced.
Analyst observations on H2O America
For investors, it is crucial to understand market sentiment and expectations in the sector. This analysis explores the latest thinking regarding H2O America.
A total of 1 analyst ratings have been received for H2O America, with the consensus rating being Neutral. The average one-year price target is $58.0, suggesting a potential upside of 14.31%.
Analyzing analyst ratings among peers
In this comparison, we examine analyst ratings and one-year average price targets of California Water Servs Gr, Consolidated Water Co and Essential Utilities, three prominent industry players, providing insight into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for California Water Servs Gr, with an average one-year price target of $55.0, suggesting a potential upside of 8.4%.
- Analysts currently favor a Buy range for Consolidated Water Co, with an average one-year price target of $40.0, suggesting a potential downside of 21.17%.
- Analysts currently favor an Outperform trajectory for Essential Utilities, with an average one-year price target of $45.2, suggesting a potential downside of 10.92%.
Overview of peer analysis
The peer analysis summary outlines crucial statistics for California Water Servs Gr, Consolidated Water Co, and Essential Utilities, showing their respective positions within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Agreement | Sales growth | Gross profit | Return on equity |
|---|---|---|---|---|
| H2O America | Neutral | 12.53% | $109.92 million | 1.72% |
| California Water Services Gr | Surpass | 8.45% | $170.41 million | 2.57% |
| Consolidated Water Co | Buy | 3.42% | $12.83 million | 2.37% |
| Essential tools | Surpass | 18.53% | $309.66 million | 1.64% |
Key Takeaway:
H2O America ranks near the bottom in terms of revenue growth among its competitors. It is also at the bottom for gross profit. However, in terms of return on equity, it is in the middle range. Overall, H2O America’s performance is below average compared to its water utility peers.
About H2O America
H2O America is a national network of local, investor-owned water and wastewater utilities united by one purpose: delivering high-quality, clean water to the communities it calls home. Through approximately 407,000 water and wastewater connections, the company invests in critical infrastructure to strengthen the water supply for generations to come.
Unraveling H2O America’s financial story
Market Capitalization Analysis: Because the company’s market capitalization is below industry benchmarks, its size is limited. This can be influenced by factors such as growth expectations or operational capacity.
Sales growth: During the three-month period, H2O America showed positive performance, with revenue growth of 12.53% as of June 30, 2025. This reflects a substantial increase in the company’s revenue gains. Compared to sector peers, turnover growth lags behind sector peers. The company achieved a growth rate that was lower than the average of its peers in the utilities sector.
Net margin: H2O America’s net margin is impressive and exceeds industry averages. With a net margin of 12.45%, the company exhibits strong profitability and effective cost management.
Return on Equity (ROE): The company’s ROE is performing excellently and exceeding industry averages. With an impressive ROE of 1.72%, the company shows effective use of equity.
Return on Assets (ROA): H2O America’s ROA exceeds industry benchmarks and extends beyond 0.52%. This means efficient asset management and strong financial health.
Debt management: The company faces debt management challenges, with its debt-to-equity ratio higher than the industry average. With a ratio of 1.28caution is advised due to the increased financial risk.
To track all earnings releases for H2O America, visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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