Consolidated Water (CWCO) Q3 Earnings & Sales Surpass Estimates
Consolidated Water Co. Ltd. CWCO delivered third-quarter 2023 earnings per share (EPS) of 55 cents, which surpassed the Zacks Consensus Estimate of 39 cents by 41%. The company reported earnings of 5 cents per share in the year-ago quarter.
Total Revenues
Consolidated Water delivered third-quarter revenues of $49.9 million, up 99% year over year. The figure surpassed the Zacks Consensus Estimate of $37 million by 34.9%.
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 third quarter totaled $7.2 million, up 15% from $6.3 million in the year-ago quarter. The rise was primarily due to a 16% increase in the volume of water sold.
Bulk revenues amounted to $8.5 million, down 2.3% from $8.7 million in the year-ago quarter. This was primarily due to a decrease in the price of energy for CW-Bahamas that decreased the energy pass-through component of rates.
Manufacturing revenues for the quarter totaled $4.7 million, up 235.7% from $1.4 million in the year-ago quarter. This increase was due to increased production activity.
Services revenues amounted to $29.4 million, up 237.9% from $8.7 million in the year-ago quarter. This improvement was due to an increase in plant construction revenues.
Highlights of the Release
General and administrative expenses increased nearly 5.4% to $5.9 million. PERC Water Corporation commenced operations under a new contract to operate a wastewater treatment plant at the Edwards Air Force Base in Kern County, CA. The annual contract began in July and has four one-year extensions exercisable by the customer. Revenues for the first year of the contract are expected to reach $1.3 million.
Net income from continuing operations amounted to $9 million compared with $1 million in the year-ago quarter.
Financial Highlights
Cash and cash equivalents totaled $48.8 million as of Sep 30, 2023, down from $50.7 million as on Dec 31, 2022. Working capital amounted to $83.1 million as of the same date. Total long-term debt was $0.13 million as of Sep 30, 2023, lower than $0.22 million at 2022-end.
CWCO paid quarterly cash dividends of 9.5 cents per share and a total dividend of $4 million in the first nine months of 2023. Cash flow from operating activities during the same time frame totaled $8.4 million compared with $15.8 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 AWK posted third-quarter 2023 operating earnings per share (EPS) of $1.66, which surpassed the Zacks Consensus Estimate of $1.55 by 7.1%.
AWK’s long-term (three to five years) earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pinned at $4.82 per share, indicating year-over-year growth of 6.9%.
SJW Group SJW reported third-quarter 2023 operating EPS of $1.13, which beat the Zacks Consensus Estimate of 94 cents by 20.2%.
The Zacks Consensus Estimate for 2023 earnings is pinned at $2.54 per share, indicating year-over-year growth of 5%. SJW delivered an average earnings surprise of 20% in the last four quarters.
Essential Utilities Inc. WTRG delivered third-quarter 2023 operating EPS of 30 cents, which surpassed the Zacks Consensus Estimate by a penny.
The company’s long-term earnings growth rate is 5.6%. The Zacks Consensus Estimate for WTRG’s 2023 EPS is pegged at $1.86, indicating a year-over-year improvement of 5.1%.
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