Is CWT's Q3 2024 EPS growth sustainable?

**California Water Service Group (CWT) is likely to experience sustainable EPS growth in Q3 2024**, based on the following points: 1. **Strategic Rate Adjustments**: CWT's earnings surge in Q2 2024 can be attributed to strategic rate adjustments approved in the 2021 General Rate Case (GRC), which have led to a 25.9% rise in operating revenue. These rate adjustments are a result of regulatory approvals and are expected to provide a stable source of income for the company. 2. **Dividend Growth and Investment Plans**: The company's dividend payouts have increased at a CAGR of 6.9% over the past three years, indicating a stable financial performance and a commitment to returning value to shareholders. Additionally, CWT's largest subsidiary, California Water Service, plans to invest more than $1.6 billion in its districts from 2025-2027, which could lead to further growth and stability in earnings. 3. **Financial Performance Metrics**: While specific EPS figures for Q3 2024 are not available, the company's financial performance in Q2 2024 shows a substantial improvement in net income, which reached $40.6 million. This improvement, coupled with the company's investment plans and historical dividend growth, suggests a strong financial foundation that supports sustainable EPS growth. In conclusion, the combination of strategic rate adjustments, dividend growth, and significant investment plans indicate that CWT's EPS growth in Q3 2024 is likely to be sustainable. However, investors should monitor the company's operational performance, regulatory developments, and market conditions that could impact its financial results over time.