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Water Stocks to Watch for Earnings on Nov 4: CTWS, YORW
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The Q3 earnings season is well underway, with 364 of the S&P 500 Index members having released results as of Nov 2. Both earnings and revenues improved 1.6%. This week too will see a string of earnings releases from over 1000 companies (including 130 S&P members).
For the remaining 136 index members, projections are of a 2.4% improvement in earnings on 1.4% higher revenues despite an anticipated 65.4% plunge in earnings on 12.2% revenue deterioration in the energy space. Notably, this could be the first quarter to record positive earnings growth after five quarters of back-to-back declines.
As of Nov 2, 2016, 63.3% of the utility companies has revealed quarterly numbers. Reported earnings were up 15.9% year over year on 8.3% higher revenues.
Let us focus on the water utility space, which needs to make massive infrastructure investments for upgrading and maintaining their infrastructure, as old and soiled water pipelines are quickly nearing their effective service life. An Environment Protection Agency (EPA) report indicates that capital investment of $384.2 billion will be required for upgrading drinking water lines and $298.2 billion for wastewater lines.
Since the water industry is quite fragmented, consolidation is the need of the hour in the fragmented U.S. water utility space. The old water utility infrastructure needs ample investments, which are easier for bigger players to make. Consolidation would therefore drive the necessary infrastructure overhauls that have become imperative for the industry at large.
In the third quarter of 2016, sector earnings are expected to be up 13.8% on 5.3% higher revenues.
Even though four out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline this season, utility is forecast to report earnings in the positive territory. Read more details in our weekly Earnings Preview report.
Now let’s take a look at a couple water utilities that are scheduled to report quarterly numbers on Nov 4.
Connecticut Water Service’s Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 85 cents. According to our proven model, stocks with the combination of a positive ESP and a Zacks Rank #1, #2 (Buy) or #3 have increased chances of beating estimates.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
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This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>
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Water Stocks to Watch for Earnings on Nov 4: CTWS, YORW
The Q3 earnings season is well underway, with 364 of the S&P 500 Index members having released results as of Nov 2. Both earnings and revenues improved 1.6%. This week too will see a string of earnings releases from over 1000 companies (including 130 S&P members).
For the remaining 136 index members, projections are of a 2.4% improvement in earnings on 1.4% higher revenues despite an anticipated 65.4% plunge in earnings on 12.2% revenue deterioration in the energy space. Notably, this could be the first quarter to record positive earnings growth after five quarters of back-to-back declines.
As of Nov 2, 2016, 63.3% of the utility companies has revealed quarterly numbers. Reported earnings were up 15.9% year over year on 8.3% higher revenues.
Let us focus on the water utility space, which needs to make massive infrastructure investments for upgrading and maintaining their infrastructure, as old and soiled water pipelines are quickly nearing their effective service life. An Environment Protection Agency (EPA) report indicates that capital investment of $384.2 billion will be required for upgrading drinking water lines and $298.2 billion for wastewater lines.
Since the water industry is quite fragmented, consolidation is the need of the hour in the fragmented U.S. water utility space. The old water utility infrastructure needs ample investments, which are easier for bigger players to make. Consolidation would therefore drive the necessary infrastructure overhauls that have become imperative for the industry at large.
In the third quarter of 2016, sector earnings are expected to be up 13.8% on 5.3% higher revenues.
Even though four out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline this season, utility is forecast to report earnings in the positive territory. Read more details in our weekly Earnings Preview report.
Now let’s take a look at a couple water utilities that are scheduled to report quarterly numbers on Nov 4.
Connecticut Water Service Inc. reported a positive earnings surprise of 27.14% in the previous quarter. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Connecticut Water Service’s Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 85 cents. According to our proven model, stocks with the combination of a positive ESP and a Zacks Rank #1, #2 (Buy) or #3 have increased chances of beating estimates.
CONN WATER SVC Price and EPS Surprise
CONN WATER SVC Price and EPS Surprise | CONN WATER SVC Quote
The York Water Company (YORW - Free Report) currently carries a Zacks Rank #3 and its Earnings ESP is 0.00%.
YORK WATER CO Price and EPS Surprise
YORK WATER CO Price and EPS Surprise | YORK WATER CO Quote
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>