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Consolidated Water (CWCO) Q2 Earnings Miss, Revenues Up Y/Y

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Consolidated Water (CWCO) Q2 Earnings Miss, Revenues Up Y/Y

Consolidated Water's (CWCO) Q2 earnings lag estimates but revenues improve year over year due to better contribution from Retail and Bulk operations.

Consolidated Water Co. Ltd. CWCO reported second-quarter 2018 earnings of 14 cents per share, missing the Zacks Consensus Estimate of 15 cents by 6.7%.

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise | Consolidated Water Co. Ltd. Quote

Total Revenues

In the quarter under review, Consolidated Water’s total revenues were $15.9 million, lagging the Zacks Consensus Estimate of $16.0 million by 0.6%. However, revenues improved 3.9% from the year-ago quarter’s $15.73 million. The year-over-year improvement was due to better contribution from its Retail and Bulk Operations.

Segment Details

Retail revenues in the second quarter were up 3.4% year over year to $6.27 million.

Bulk revenues were $8.48 million, up 5% from the prior-year figure.

Manufacturing revenues were nearly $0.99 million, down 6% year over year.

Services revenues of $0.12 million were up from the year-ago figure by 3.1%.

Highlights of the Release

In the second quarter, total cost of revenues increased 5.1% year over year to $9.3 million, mainly due to higher cost of bulk revenues.

Consolidated Water’s gross profit in the quarter under review was $6.6 million, up 2.2% from the prior-year level.

The company incurred general and administrative expenses of $4.5 million, down 8.9% from the prior-year figure.

As of Jun 30, 2018, Consolidated Water’s cash and cash equivalents were $34.1 million, down from $47.2 million on Dec 31, 2017.

Zacks Rank

Currently, Consolidated Water carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Water Supply Utilities’ Release

Here are some other players from the water utility space that have reported second-quarter earnings:

American Water Works Co. AWK beat the Zacks Consensus Estimate by 2.3%, SJW Group SJW reported in-line earnings, while American States Water Company AWR missed the same by 8.3%.

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