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Connecticut Water (CTWS) Q1 Earnings Beat, Sales Rise Y/Y

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Connecticut Water Service Inc. reported first-quarter 2017 earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 35 cents by 2.9%. Moreover, earnings also improved 28.6% year over year.

The year-over-year improvement in earnings was due to decline in operating expenses and benefits from the acquisition of Heritage Village Water Company during the first quarter.

 

 

Total Revenue

In the quarter under review, Connecticut Water’s total revenue was $24.2 million, up 4.8% year over year, primarily on higher contribution from its Water Operation segment.

Segment Details

Water Operations contributed $22.7 million in the first quarter to total revenue, compared with $21.8 million in the prior-year quarter.

Real Estate Transactions contributed $0.2 million in the first quarter of 2017.

Services & Rentals contributed $1.21 million in first quarter, compared with $1.23 million a year ago.

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

 

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

Highlights of the Release

In first quarter, the company’s total operating expenses were $17.3 million, down nearly 1.7% year over year. The decline in expenses was due to the company’s initiative toward cost savings and improved efficiency.

Connecticut Water’s utility operating income in the reported quarter increased 26.2% year over year to $5.3 million. Net income amounted to $4.1 million, up 28.1%.

On Feb 27, 2017, the company completed the acquisition of Heritage Village Water Company (HVWC) for $20.7 million. Heritage Village Water Company serves approximately 4,700 water and 3,000 wastewater customers in the communities of Middlebury, Oxford, Southbury and Connecticut. The acquisition boosted the earnings of the company in the first quarter.

Financial Update

As of Mar 31, 2017, Connecticut Water’s current assets were $31.1 million, compared with $29.4 million as of Mar 31, 2016.

Net utility plant was worth $636.6 million as of Mar 31, 2017, compared with $554.5 million as of Mar 31, 2016.

Long-term debt as of Mar 31, 2017, was $205.6 million, compared with $171.9 million as of Mar 31, 2016.

Zacks Rank

Connecticut Water currently has a Zacks Rank #4 (Sell).

Peer Releases

American States Water Company (AWR - Free Report) reported first-quarter 2017 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 32 cents by 6.25%. It carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

California Water Service Group (CWT - Free Report) , a Zacks Rank #3 stock, reported first-quarter 2017 earnings of 2 cents per share, lagging the Zacks Consensus Estimate of 5 cents by 60.0%.

SJW Corporation (SJW - Free Report) , a Zacks Rank #4 stock, reported first-quarter 2017 earnings of 18 cents per share, lagging the Zacks Consensus Estimate of 22 cents by 18.18%.

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