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Consolidated Water (CWCO) Q1 Earnings Top, Sales Dip Y/Y

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Consolidated Water Co. Ltd. (CWCO - Free Report) reported first-quarter 2021 earnings of 8 cents per share, beating the Zacks Consensus Estimate by 60%. However, earnings were down 61.9% from 21 cents per share recorded in the year-ago quarter.

Revenues

The company’s total revenues for first-quarter 2021 came in at $17 million, on par with the Zacks Consensus Estimate. However, total revenues were down 19% year over year. The year-over-over year decline in revenues was due to lower contribution from its retail and manufacturing segments.

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 first-quarter 2021 decreased 21.3% year over year to $5.71 million. This reflects a 20% decrease in the volume of water sold by Cayman Water due to the closing of Grand Cayman Island to tourists in March 2020 in response to the COVID-19 pandemic.

Bulk revenues came in at $6.24 million for first-quarter 2021, down 3% from the prior-year figure. The decrease in revenues was due to lower rates and reduced energy costs in the Bahamas, which in turn lowered energy pass-through charges to customers therein.

Manufacturing revenues amounted to $1.6 million for the first quarter, down 58.9% year over year. The year-over year decline was due to decrease in orders from Aerex’s former largest customer.

Services revenues were $3.11 million for the first quarter, up 13.7% year over year. The year-over-year improvement was due to contribution from new operating and maintenance contracts.

Other Details

General and administrative expenses for the quarter increased 1.5% from the year-ago level to $4.76 million.

Management aims to expand operations and water solutions in 2021 through organic growth, acquisitions as well as new projects.

Financial Highlights

Cash and cash equivalents as of Mar 31, 2021 were $42.8 million, up from $43.8 million on Dec 31, 2020.

Long-term debt as of Mar 31, 2021 was $0.16 million compared with $0.13 million on Dec 31, 2020.

Cash provided from (used in) operating activities in first-quarter 2021 was $1.08 million compared with ($0.3) million in the comparable year-ago period.

Zacks Rank

Currently, Consolidated Water carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Here are some other players from the water utility space that have reported first-quarter earnings:

American Water Works’ (AWK - Free Report) earnings per share were in line with the Zacks Consensus Estimate. Essential Utilities (WTRG - Free Report) and American States Water’s (AWR - Free Report) earnings per share surpassed the Zacks Consensus Estimate by 17% and 8.3%, respectively.

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