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Consolidated Water (CWCO) Down 9.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Consolidated Water (CWCO - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Consolidated Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Consolidated Water Q1 Earnings & Sales Beat Estimates
Consolidated Water Co. Ltd. delivered first-quarter 2024 earnings per share (EPS) of 43 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 10.3%. The bottom line also increased 65.4% from last year’s 26 cents per share.
Total Revenues
The company’s total revenues for the quarter were $39.7 million, which surpassed the Zacks Consensus Estimate of $38.7 million by 2.7%. The top line also improved 20.7% from the year-ago quarter’s figure of $32.9 million.
Segment Details
Retail revenues totaled $8.6 million, up 11% from $7.8 million in the year-ago quarter. The rise was primarily due to a 6% increase in the volume of water sold.
Bulk revenues amounted to $8.3 million, down 8.4% from $9 million in the last year. This was primarily due to a decrease of 2% in the volume of water sold by CW-Bahamas and lower energy costs, which decreased the energy pass-through component of the company’s bulk water rates.
Manufacturing revenues for the quarter totaled $5.3 million, up 57% from $3.4 million in the previous year. This increase was due to higher project activity.
Services revenues amounted to $17.4 million, up 37% from $12.7 million in the last year. This improvement was due to plant construction revenues increasing 6% to $9.2 million.
Highlights of the Release
General and administrative expenses decreased nearly 37.7% to $6.6 million.
Net income from continuing operations amounted to $7.1 million compared with $4.2 million in the year-ago quarter.
Financial Highlights
Cash and cash equivalents totaled $46.2 million as of Mar 31, 2024 compared with $42.6 million as of Dec 31, 2023. Working capital amounted to $95 million as of the same date.
Total long-term debt was $0.15 million as of Mar 31, 2024, lower than $0.19 million at 2023-end.
Cash flow from operating activities during the first three months of 2024 totaled $5.9 million compared with $5.3 million in the year-ago period.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Consolidated Water has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Consolidated Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Consolidated Water (CWCO) Down 9.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Consolidated Water (CWCO - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Consolidated Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Consolidated Water Q1 Earnings & Sales Beat Estimates
Consolidated Water Co. Ltd. delivered first-quarter 2024 earnings per share (EPS) of 43 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 10.3%. The bottom line also increased 65.4% from last year’s 26 cents per share.
Total Revenues
The company’s total revenues for the quarter were $39.7 million, which surpassed the Zacks Consensus Estimate of $38.7 million by 2.7%. The top line also improved 20.7% from the year-ago quarter’s figure of $32.9 million.
Segment Details
Retail revenues totaled $8.6 million, up 11% from $7.8 million in the year-ago quarter. The rise was primarily due to a 6% increase in the volume of water sold.
Bulk revenues amounted to $8.3 million, down 8.4% from $9 million in the last year. This was primarily due to a decrease of 2% in the volume of water sold by CW-Bahamas and lower energy costs, which decreased the energy pass-through component of the company’s bulk water rates.
Manufacturing revenues for the quarter totaled $5.3 million, up 57% from $3.4 million in the previous year. This increase was due to higher project activity.
Services revenues amounted to $17.4 million, up 37% from $12.7 million in the last year. This improvement was due to plant construction revenues increasing 6% to $9.2 million.
Highlights of the Release
General and administrative expenses decreased nearly 37.7% to $6.6 million.
Net income from continuing operations amounted to $7.1 million compared with $4.2 million in the year-ago quarter.
Financial Highlights
Cash and cash equivalents totaled $46.2 million as of Mar 31, 2024 compared with $42.6 million as of Dec 31, 2023. Working capital amounted to $95 million as of the same date.
Total long-term debt was $0.15 million as of Mar 31, 2024, lower than $0.19 million at 2023-end.
Cash flow from operating activities during the first three months of 2024 totaled $5.9 million compared with $5.3 million in the year-ago period.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Consolidated Water has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Consolidated Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.