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SABESP's (SBS) Q1 Earnings Miss Estimates, Revenues Beat

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Companhia de Saneamento Basico do Estado de Sao Paulo (SBS - Free Report) or SABESP's net income in first-quarter 2019 improved 11.5% year over year to R$647.3 million ($164.9 million). The company’s earnings per share (EPS) totaled R$0.91, up from the year-ago figure of R$0.85.

Considering the ADR equivalent of EPS, the bottom line in the reported quarter was 25 cents, lagging the Zacks Consensus Estimate of 28 cents by 10.7%. Also, the reported figure declined 3.8% from the year-ago level of 26 cents.

Total Revenues
 
In the reported quarter, SABESP's net operating revenues (including construction revenues) were R$3,878.5 million ($1,029 million), up 4.8% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate of $1,001 million by 2.8%.

Highlights of the Release

In the first quarter, costs and expenses, including construction costs, totaled R$2,156.4 million ($549.2 million), increasing 7.9% year over year.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were R$1,544.7 million ($393.4 million), increasing 10.4% from the prior-year quarter.

Billed water and sewage volumes in first-quarter 2019 grew 3.1% year over year to 972.4 million cubic meters.

Balance Sheet & Cash Flow

As of Mar 31, 2019, SABESP's cash and cash equivalents were R$2,205.1 million ($561.8 million), down from R$3,029.1 million ($780.1 million) at the end of 2018.

During the first quarter of 2019, cash generation from operating activities was R$1,493.5 million ($380.4 million) versus R$1,557.1 million a year ago.

Zacks Rank

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

Other Water Supply Utilities’ Release

Here are some other players from the water utility space that have reported first-quarter earnings. Global Water Resources (GWRS - Free Report) , SJW Group (SJW - Free Report) and Middlesex Water Company (MSEX - Free Report) beat the Zacks Consensus Estimate by 200%, 86.7% and 25.81%, respectively.

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