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Consolidated Water (CWCO) Q3 Earnings & Sales Miss Estimates

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Consolidated Water Co. Ltd. (CWCO - Free Report) reported third-quarter 2020 earnings of 12 cents per share, which missed the Zacks Consensus Estimate of 15 cents by 20%.

Total Revenues

The company’s total third-quarter revenues came in at $17.7 million, up 11.3% from the year-ago figure of $15.9 million. However, the reported revenues missed the Zacks Consensus Estimate of $19.1 million by 7.3%.

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise

Consolidated Water Co. Ltd. price-consensus-eps-surprise-chart | Consolidated Water Co. Ltd. Quote

Segment Details

Retail revenues for the third quarter decreased 20.4% year over year to $4.99 million. This was mainly due to the continuing closure of the borders in the Cayman Islands to tourist travel in response to the pandemic and wetter weather conditions in the Cayman Islands during the third quarter.

Bulk revenues came in at $6.06 million, down 5.9% from the prior-year figure. The decrease in revenues was due to lower energy costs in the Bahamas, which in turn reduced energy pass-through charges to customers therein.

Manufacturing revenues amounted to $3.25 million, up 5.9% year over year.

Services revenues were $3.35 million for the quarter, up 252.6% from $0.9 million in the year-ago period.

Highlights of the Release

Gross profit for the third quarter was $6.2 million, down 7.3% from $6.7 million in the year-ago period.

General and administrative expenses increased 12.6% from the year-ago level to $4.81 million.

For the third quarter, revenues improved year over year due to $3.2 million revenue contribution by the new PERC Water subsidiary, which provides design, engineering, construction and management services for the water treatment infrastructure in the United States.

Financial Highlights

Cash and cash equivalents as of Sep 30, 2020 were $38.2 million, down from $42.9 million on Dec 31, 2019.

Long-term debt as of Sep 30, 2020 was $0.14 million compared with $0.06 million on Dec 31, 2019.

Cash used in operating activities for the first nine months of 2020 was $10.9 million versus cash provided from operating activities of $5.6 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 third-quarter earnings:

American Water Works (AWK - Free Report) and Middlesex Water Company’s (MSEX - Free Report) earnings beat the Zacks Consensus Estimate by 5.8% and 2.9% respectively, while Essential Utilities’ (WTRG - Free Report) bottom line lagged expectation by 11.5%.

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