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Consolidated Water (CWCO) Q1 Earnings & Sales Beat Estimates

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Consolidated Water Co. Ltd. (CWCO - Free Report) reported first-quarter 2022 operating earnings per share of 15 cents, surpassing the Zacks Consensus Estimate of 9 cents by 66.7%.

GAAP earnings in the quarter were 11 cents compared to 6 cents reported in the year-ago quarter.

Total Revenues

The company’s total revenues for first-quarter 2022 came in at $19.6 million, up 14.4% from the year-ago figure of $17.1 million. The year-over-year improvement was due to strong contribution from the Bulk, Retail and Services segment.

The revenues in the reported quarter were 14.4% higher than the Zacks Consensus Estimate of $17 million.

 

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 2022 increased 10.5% year over year to $6.3 million. This reflects an 8% increase in the volume of water sold.

Bulk revenues came in at $7.35 million in first-quarter 2022, up 17.8% from the prior-year figure. The increase in revenues was due to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates and, to a lesser extent, a 5% increase in the volume of water sold by CW-Bahamas.

Manufacturing revenues amounted to $1.15 million in first-quarter 2022, down 28.3% year over year. The year-over-year decline was due to significant product delivery delays requested by customers as well as continuing delayed shipments of raw materials and supplies to Aerex.

Services revenues were $4.74 million for first-quarter 2022, up 33.9% year over year. The improvement was due to an increase in both plant design revenues and operating and maintenance revenues.

Other Details

Return of tourism to the Cayman Islands has increased the demand for water. As tourists continue to return, demand for water will rise, benefiting Consolidated Water.

Gross profit for the first quarter of 2022 was $7.1 million, up 17% from $6.1 million for the corresponding year-ago period.

General and administrative expenses for first-quarter 2022 were up 2.1% from the year-ago level to $4.86 million.

Financial Highlights

Cash and cash equivalents as of Mar 31, 2022 were $43.1 million, up from $40.4 million as of Dec 31, 2021.

Long-term debt as of Mar 31, 2022 was $0.14 million compared with $0.15 million as of Dec 31, 2021.

CWCO distributed quarterly dividend of 8.5 cents per share, totaling $1.3 million in dividends in the first quarter of 2022.

Other Releases

American Water Works Company (AWK - Free Report) posted first-quarter 2022 operating earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate of 75 cents by 16%.

The Zacks Consensus Estimate for American Water Works’ 2022 and 2023 EPS implies year-over-year growth of 5.18% and 8.61%, respectively. American Water Works reported an average surprise of 5.27% in the last four quarters.

Middlesex Water Company (MSEX - Free Report) recorded first-quarter 2022 operating earnings per share of 68 cents, which surpassed the Zacks Consensus Estimate of 50 cents by 36%.

Middlesex Water Company reported an average beat of 2% in the last four quarters. The Zacks Consensus Estimate for MSEX’s 2022 earnings per share of $2.65 reflects year-over-year growth of 28%.

Essential Utilities Inc. (WTRG - Free Report) reported first-quarter 2022 operating earnings per share of 76 cents, which surpassed the Zacks Consensus Estimate of 74 cents by 2.7%.

The Zacks Consensus Estimate for Essential Utilities’ 2022 and 2023 EPS implies year-over-year growth of 6.59% and 7.3%, respectively.

Zacks Rank

Consolidated Water carries a Zacks Rank #3 (Hold).

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