Consolidated Water (CWCO) Q2 Earnings & Sales Surpass Estimates
Consolidated Water Co. Ltd. CWCO delivered second-quarter 2023 earnings per share (EPS) of 47 cents, which surpassed the Zacks Consensus Estimate of 22 cents by 113.6%. The bottom line increased 161.1% from the previous year’s 18 cents.
Total Revenues
Consolidated Water delivered second-quarter revenues of $44 million, up 109.5% year over year. The figure surpassed the Zacks Consensus Estimate of $30 million by 46.2%.
Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise
Consolidated Water Co. Ltd. price-consensus-eps-surprise-chart | Consolidated Water Co. Ltd. Quote
Segment Details
Retail revenues for the second quarter were $7.6 million, an increase of 16.9% from $6.5 million in the year-ago quarter. The rise was primarily due to a 17% increase in the volume of water sold.
Bulk revenues were $8.48 million, up 0.7% from $8.42 million in the year-ago quarter. The rise was primarily due to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates and, to a lesser extent, an increase of 9% in the volume of water sold by CW-Bahamas.
Manufacturing revenues for the second quarter of 2023 were $4.1 million, an increase of 173.3% from $1.1 million in the year-ago quarter. This increase was due to higher project activity.
Services revenues were $24.1 million, up 372.5% from $5.1 million in the year-ago quarter. The improvement was due to an increase in plant design and construction revenues.
Highlights of the release
General and administrative expenses increased by nearly 22.4% to $6 million. The company’s new Cayman Water 1 million gallons per day West Bay desalination plant is replacing a 30-year-old plant and supplements production capacity for its retail water business in Grand Cayman. This new desalination plant is expected to start operating next month.
Net income from continuing operations was $7.5 million, 177.7% higher than the year-ago figure.
Financial Highlights
Cash and cash equivalents amounted to $47.7 million as of Jun 30, 2023, down from $50.7 million on Dec 31, 2022 and working capital was $75.5 million as of Jun 30. Total long-term debt was $0.16 million as of Jun 30, 2023, lower than $0.22 million at 2022-end.
CWCO paid quarterly cash dividends of 8.5 cents per share and a total dividend of $2.64 million was paid in the first half of 2023. Cash flow from operating activities in the first half of 2023 was $5.6 million compared with $13.9 million in the year-ago period.
Zacks Rank
Consolidated Water currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
American Water Works Company AWK posted second-quarter 2023 operating earnings per share of $1.44, which surpassed the Zacks Consensus Estimate of $1.27 by 13.4%.
The long-term (three- to five-year) earnings growth of American Water Works is pegged at 8.18%. The Zacks Consensus Estimate for AWK’s 2023 earnings per share of $4.79 suggests year-over-year growth of nearly 6.2%.
Essential Utilities Inc. WTRG delivered second-quarter 2023 operating earnings per share of 34 cents, on par with the Zacks Consensus Estimate.
The long-term earnings growth of Essential Utilities is pegged at 5.6%. The Zacks Consensus Estimate for WTRG’s 2023 earnings per share of $1.86 suggests year-over-year growth of 5.1%.
Middlesex Water MSEX came out with quarterly earnings of 55 cents per share, in line with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for MSEX’s 2023 earnings per share of $2.23 suggests a year-over-year decline of 6.7%.
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