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Consolidated Water (CWCO) Q1 Earnings Beat, Revenues Miss

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Consolidated Water Co. Ltd. (CWCO - Free Report) reported first-quarter 2018 earnings of 19 cents per share, beating the Zacks Consensus Estimate of 18 cents by 5.56%.

Excluding one-time adjustments related to the Rosarito Project, the company reported GAAP earnings of 14 cents. The figure declined 22.2% from the prior-year quarter’s tally.

Total Revenues

In the quarter under review, Consolidated Water’s total revenues were $15.3 million, lagging the Zacks Consensus Estimate of $17.0 million by 10%. Revenues declined 2.2% from the year-ago quarter’s $15.7 million. The downside was caused by lower segment revenues except Bulk Water Operations.

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 first quarter were down 0.7% year over year to $6.43 million.

Bulk Water Operations revenues were $8.2 million, up 7% from the prior-year quarter’s figure.

Manufacturing revenues were nearly $0.55 million, down 60% year over year.

Services Operations revenues of $0.12 million were down from the year-ago quarter’s figure by 5%.

Highlights of the Release

In the first quarter, total cost of revenues fell 1.3% year over year to $8.7 million, mainly due to lower cost of revenues in Manufacturing Operations.

Consolidated Water’s gross profit in the quarter under review was $6.6 million, down 3.4% from the prior-year quarter’s level.

The company incurred general and administrative expenses of $4.7 million, down 0.6% from the prior-year quarter’s figure.

As of Mar 31, 2018, Consolidated Water’s cash and cash equivalents were $43.7 million, down from $47.2 million as of Dec 31, 2017.

Zacks Rank

Consolidated Water carries a Zacks Rank #4 (Sell).

Water Utility Releases

American Water Works Co. (AWK - Free Report) , a Zacks Rank #3 (Hold) stock, beat the Zacks Consensus Estimate for first-quarter earnings by 7.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some other players from the water utility space that have reported first-quarter earnings so far.

SJW Group (SJW - Free Report) reported in-line earnings while American States Water Company’s (AWR - Free Report) earnings missed the consensus mark.

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