Consolidated Water Co. Ltd. ( CWCO Quick Quote CWCO - Free Report) reported second-quarter 2020 earnings of 13 cents per share, which beat the Zacks Consensus Estimate of 12 cents by 8.3%. Total Revenues
The company’s total second-quarter revenues came in at $19.1 million, up 4.4% from the year-ago figure of $18.3 million. The reported revenues also surpassed the Zacks Consensus Estimate of $18 million by 6.3%.
The year-over-year improvement can be attributed to strong contribution from its Services segment. Segment Details Retail revenues for the second quarter decreased 14.5% year over year to $6 million. This was due to a 16% decrease in the volume of water sold as a result of the temporary cessation of tourism on Grand Cayman in response to the COVID-19 pandemic. Bulk revenues came in at $5.9 million, down 14.5% from the prior-year figure. The decrease in revenues was due lower energy costs in the Bahamas. Manufacturing revenues amounted to $3.77 million, down 12.1% year over year. The year-over-year decline was due to a decrease in the number of active projects. Services revenues were $3.47 million for the quarter, up 285.5% from $0.9 million in the year-ago period. The increase was due to the addition of $3.4 million revenues from PERC Water as a result of Consolidated Water’s acquisition of a 51% stake in the former in late October 2019. Highlights of the Release
Gross profit for the second quarter was $7.3 million or 38.3% of total revenues, down 3% from $7.6 million or 41.3% in the year-ago period.
For the second quarter, total cost of revenues increased 9.3% year over year to $12.3 million. General and administrative expenses increased 15.9% from the year-ago level to $11.8 million. In the second quarter, all business segments of the company were adversely impacted by the COVID-19 pandemic. However, Consolidated Water is well positioned to successfully navigate this uncertain and turbulent time. Financial Highlights
Cash and cash equivalents as of Jun 30, 2020 were $34.9 million, down from $42.9 million on Dec 31, 2019.
Long-term debt as of Jun 30, 2020 was $0.15 million compared with $0.06 million on Dec 31, 2019. Cash used in operating activities in first-half 2020 was $9.2 million versus cash provided from operating activities of $6.1 million in the comparable year-ago period. Zacks Rank
Currently, Consolidated Water carries 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 players from the water utility space that have reported second-quarter earnings:
American Water Works ( AWK Quick Quote AWK - Free Report) , Middlesex Water Company’s ( MSEX Quick Quote MSEX - Free Report) and The York Water Company ( YORW Quick Quote YORW - Free Report) beat earnings estimates by 1.04%, 7.84% and 14.3%, respectively. 5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>