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Consolidated Water (CWCO) Q3 Earnings Lag, Revenues Beat

Zacks Equity Research

Consolidated Water Co. Ltd. CWCO reported third-quarter 2017 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 14 cents by 21.4%.

Total Revenues

In the quarter under review, Consolidated Water’s total revenues were $16.6 million, surpassing the Zacks Consensus Estimate of $15.0 million by 10.7%. Reported revenues were also higher than the year-ago figure of $14.4 million by 15.2%.

The year-over-year increase in revenues was primarily due to higher contribution from retail, bulk and manufacturing segments, which was marginally offset by lower revenues from the services segment.

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

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

Segment Details

Retail Water Operations revenues in the third quarter were up 1.8% year over year to $5.6 million.

Bulk Water Operations revenues increased 6.8% year over year to $7.9 million.

Manufacturing revenues were $3 million, up 117.4% year over year.

Services Operations revenues of $0.11 million were down from the year-ago figure of $0.12 million by 11.6%.

Highlights of the Release

In the third quarter, total cost of revenues increased 21.1% year over year to $10.26 million, mainly due to higher cost of revenues in Manufacturing and Bulk Water Operations.

Consolidated Water’s gross profit in the third quarter was $6.30 million, up 6.6% from the prior-year quarter.
 
Moreover, the company incurred general and administrative expenses of $4.89 million, up 7.9% year over year.

Financial Update

As of Sep 30, 2017, Consolidated Water’s cash and cash equivalents were $46.9 million, up from $39.3 million as of Dec 31, 2016.

Cash used in operating activities in the first nine months of 2017 was $0.6 million compared with $2.4 million in the year-ago period.

Zacks Rank

Consolidated Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of the Peers

Earnings from its peers in the third quarter were mixed. American States Water Company AWR missed the Zacks Consensus Estimate while American Water Works Company’s AWK earnings were on par and Global Water Resource Inc. GWRS surpassed the same.

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