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SABESP's (SBS) Q2 Earnings Miss Estimates, Revenues Rise Y/Y

Zacks Equity Research

Companhia de Saneamento Basico do Estado de Sao Paulo SBS or SABESP's net income in second-quarter 2019 improved 149.8% year over year to R$454.4 million ($118 million). The company’s earnings per share (EPS) totaled R$0.66, up from the year-ago figure of R$0.27.

Considering the ADR equivalent of EPS, the bottom line in the reported quarter was 17 cents, lagging the Zacks Consensus Estimate of 25 cents by 32%.
 
Total Revenues
 
In the reported quarter, SABESP's net operating revenues (including construction sales) were R$3,997.9 million ($1,038.3 million), up 8.9% year over year. The figure also surpassed the Zacks Consensus Estimate of $969 million by 7.1%.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Price, Consensus and EPS Surprise

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Price, Consensus and EPS Surprise

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp price-consensus-eps-surprise-chart | Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Quote

Highlights of the Release

In the second quarter, costs and expenses, including construction costs, totaled R$3,195 million ($829.7 million), increasing 22.1% year over year.

Adjusted earnings before interest, taxes, depreciation and amortization were R$1,231.6 million ($319.8 million), declining 10.9% from the prior-year quarter.

Billed water and sewage volumes in second-quarter 2019 grew 2.6% year over year to 955.4 million cubic meters.

Zacks Rank

SABESP currently has a Zacks Rank #4 (Sell).
 
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 States Water AWR, SJW Group SJW and Connecticut Water Service, Inc. CTWS beat the Zacks Consensus Estimate by 23.1%, 9.4% and 1.5%, respectively.

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Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS) : Free Stock Analysis Report
 
Connecticut Water Service, Inc. (CTWS) : Free Stock Analysis Report
 
American States Water Company (AWR) : Free Stock Analysis Report
 
SJW Group (SJW) : Free Stock Analysis Report
 
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