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Connecticut Water (CTWS) Q3 Earnings Top, Customers Increase


Connecticut Water Service Inc. CTWS reported third-quarter 2017 earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate of 88 cents by 2.3%. Earnings were up 7.1% year over year.

The company is continuing with its inorganic growth strategy. Year to date, it has added 9,500 customers through acquisitions, reflecting a customer base growth of nearly 7.5%.

Total Revenues

In the quarter under review, Connecticut Water’s total revenues were $33.5 million, up 7.1% year over year, primarily on higher contribution from its Water Operation segment.

The year-over-year increase in revenues was due to benefits derived from the acquisition of the Heritage Village Water Company in February 2017 and the Avon Water Company in July 2017. In addition, the recovery of costs for completed infrastructure replacement projects also boosted revenues.

Connecticut Water Service, Inc. Price, Consensus and EPS Surprise

Connecticut Water Service, Inc. Price, Consensus and EPS Surprise | Connecticut Water Service, Inc. Quote

Segment Details

Water Operations contributed $33.5 million in the third quarter to total revenues compared with $29.8 million in the prior-year quarter.

Services & Rentals contributed $1.26 million in the quarter compared with $1.41 million a year ago.

Highlights of the Release

In the third quarter, the company’s total operating expenses were $19.5 million, up nearly 4.3% year over year.

Connecticut Water’s utility operating income in the reported quarter improved 15.6% year over year to $12.6 million.

The new $30 million Rockville Water Treatment Facility that went online this spring will help the company supply high quality water to nearly 85,000 customers.

Financial Update

As of Sep 30, 2017, Connecticut Water’s current assets were $47.2 million compared with $36.5 million as of Sep 30, 2016.

Net utility plant was worth $683.7 million as of Sep 30, 2017 compared with $583.8 million as of Sep 30, 2016.

Long-term debt as of Sep 30, 2017 was $255.2 million compared with $200.2 million as of Sep 30, 2016.

Zacks Rank

Connecticut 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

Earnings from its peers in the third quarter were mixed. American States Water Company AWR missed the Zacks Consensus Estimate while American Water Works Company’s AWK earnings were on par and Global Water Resource Inc. GWRS surpassed the same.

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