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SABESP's (SBS) Q3 Earnings and Revenues Surpass Estimates

Zacks Equity Research

Companhia de Saneamento Basico do Estado de Sao Paulo SBS or SABESP's net income in third-quarter 2019 improved 113.9% year over year to R$1,208.9 million ($290.6 million). The company’s earnings per share totaled R$1.77, up from the year-ago figure of R$0.83.

Considering the ADR equivalent of EPS, the bottom line in the reported quarter was 45 cents, beating the Zacks Consensus Estimate of 22 cents by 104.5%.
 
Total Revenues
 

In the reported quarter, SABESP's net operating revenues (including construction sales) were R$5,410.6 million ($1,365 million), up 42% year over year. The figure also surpassed the Zacks Consensus Estimate of $1,000 million by 36.5%.

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 third quarter, costs and expenses — including construction costs — totaled R$2,873.6 million ($724.9 million), increasing 5.7% year over year.

Adjusted earnings before interest, taxes, depreciation and amortization were R$3,009.3 million ($759.2 million), improving 109.8% from the prior-year quarter.

Billed water and sewage volumes in third-quarter 2019 grew 3.8% year over year to 959 million cubic meters.

Guidance

The company expects to invest $4.5 billion (R$18.7 billion) over the 2019-2023 time frame to further strengthen water, sewage collection and sewage treatment units.

Financial Update

Cash and cash equivalents as of Sep 30, 2019 was R$2,633.4 million ($632.9 million) compared with $3,029.1 million on Dec 31, 2018.

Borrowings and financing as of Sep 30, 2019 were R$11,952.7 million ($2,873.1 million) compared with $11,049.2 million on Dec 31, 2018.

Zacks Rank

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

Other Releases

Here are some other players from the water utility space that have reported third-quarter earnings. American Water Works AWK and Aqua America, Inc. WTR beat the Zacks Consensus Estimate by 3.1%, and 11.6%, respectively. However, Consolidated Water Co. Ltd. CWCO reported third-quarter 2019 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 16 cents.

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Aqua America, Inc. (WTR) : Free Stock Analysis Report
 
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
 
Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
 
Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS) : Free Stock Analysis Report
 
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