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Consolidated Water (CWCO) Q3 Earnings & Sales Beat Estimates

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Consolidated Water Co. Ltd. CWCO reported third-quarter 2021 earnings of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents by 28.6%. In the year-ago quarter, CWCO reported earnings of 12 cents per share.

Revenues

Total revenues for third-quarter 2021 came in at $16.4 million, which surpassed the Zacks Consensus Estimate of $16 million by 1.3%.

Total revenues were down 7.3% year over year. The year-over-over year decline in revenues was due to lower contribution from the Service and Manufacturing segment.

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

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise
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 third-quarter 2021 improved 5.2% year over year to $5.3 million. This reflects a 1% increase in the volume of water sold by Cayman Water.

Bulk revenues came in at $6.9 million for third-quarter 2021, up 13.1% from the prior-year figure. The increase in revenues was due to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates.

Manufacturing revenues amounted to $1.08 million for the third quarter, down 66.8% year over year. The year-over-year decline was due to a decrease in orders from Aerex’s former largest customer.

Services revenues were $3.21 million for the third quarter, down 4.2% year over year.

Other Details

General and administrative expenses for the quarter decreased 8.3% from the year-ago level to $4.35 million.

Interest income for the reported quarter was $0.17 million, up 2.5% from the year-ago quarter.

Consolidated Water’s subsidiary, PERC Water continued to expand recurring revenues by signing a five-year wastewater plant maintenance services contract with a gaming and live entertainment business in Southern California.

The Cayman Islands government announced that the country would reopen its borders for nearly all vaccinated travelers from Nov 20, 2021, which is expected to give rise to fresh demand for Consolidated Water in the fourth quarter.

Financial Highlights

Cash and cash equivalents as of Sep 30, 2021 were $40.4 million, down from $43.8 million on Dec 31, 2020.

Long-term debt as of Sep 30, 2021 was $0.14 million compared with $0.13 million on Dec 31, 2020.

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 Releases

American Water Works Company AWK posted third-quarter 2021 earnings of $1.53 per share, beating the Zacks Consensus Estimate by a penny. Total revenues of $1,092 million lagged the Zacks Consensus Estimate of $1,096 million by 0.4%.

American Water reiterated its 2021 earnings guidance in the range of $4.18-$4.28 per share and issued its 2022 bottom-line view within $4.39-$4.49. American Water’s long-term earnings growth is expected in the range of 7-9% for the 2022-2026 time period.

Essential Utilities Inc. WTRG reported third-quarter 2021 earnings per share of 19 cents, which lagged the Zacks Consensus Estimate of 22 cents by 13.6%. Revenues for the reported quarter lagged the Zacks Consensus Estimate by 1.4%.

Essential Utilities reaffirmed its 2021 earnings guidance at $1.64-$1.69 per share. Essential expects earnings per share growth of 5-7% from 2020 through 2023.

California Water Service CWT recorded third-quarter 2021 earnings of $1.20 per share, outperforming the Zacks Consensus Estimate of 79 cents by 51.9%. Operating revenues of $256.7 million beat the Zacks Consensus Estimate of $252 million by 1.9%.

The Zacks Consensus Estimate for 2021 and 2022 earnings of California Water Service has moved up 7.6% and 3.2%, respectively, in the past 60 days.

Shares of American Water, Essential Utilities, and California Water have returned 8.4%, 5.9%, and 22.1%, respectively, in the past 12 months.


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