Back to top

Image: Bigstock

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

Read MoreHide Full Article

Companhia de Saneamento Basico do Estado de Sao Paulo (SBS - Free Report) 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%.

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 - Free Report) and Aqua America, Inc. beat the Zacks Consensus Estimate by 3.1%, and 11.6%, respectively. However, Consolidated Water Co. Ltd. (CWCO - Free Report) reported third-quarter 2019 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 16 cents.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>

Published in