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Consolidated Water (CWCO) Misses Q2 Earnings and Revenues


Consolidated Water Co. Ltd. CWCO reported second-quarter 2017 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 16 cents by 31.2%.

Total Revenue

In the quarter under review, Consolidated Water’s total revenue was $15.3 million, lagging the Zacks Consensus Estimate of $16.0 million by 4.4%. Reported revenues were also marginally lower than the year-ago figure of $15.4 million.

The year-over-year decline in revenues was primarily due to lower contribution from retail, services and manufacturing segments, which was marginally offset by higher revenues from the bulk segment.

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 second quarter were down 3.9% year over year to $6.03 million.

Bulk Water Operations revenues were up 8.1% year over year to $8.04 million.

Manufacturing revenues were $1.05 million, down 16.2% year over year.

Services Operations revenues of $0.23 million were down from the year-ago figure of $0.40 million.

Highlights of the Release

In the second quarter, total cost of revenues increased 1.0% year over year to $8.76 million, mainly due to higher cost of revenues from Retail and Bulk Water Operations, partially offset by lower cost of Services revenues and Manufacturing revenues.

Consolidated Water’s gross profit in the second quarter was $6.49 million, down 3.1% from the prior-year quarter.

Moreover, the company incurred general and administrative expenses of $4.96 million, up 1.4% year over year.

Financial Update

As of Jun 30, 2017, Consolidated Water’s cash and cash equivalents were $45.9 million, up from $39.3 million as of Dec 31, 2016.

Zacks Rank

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

Performance of the Peers

Among the other companies in the same industry, American States Water Company AWR and Connecticut Water Service Inc.’s CTWS second-quarter earnings surpassed the Zacks Consensus Estimate while Aqua America Inc.’s WTR earnings were on par.

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