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What's in Store for Consolidated Water (CWCO) in Q3 Earnings?

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Consolidated Water Co. Ltd. (CWCO - Free Report) is scheduled to release third-quarter 2023 results on Nov 10, before market open. The company delivered an earnings surprise of 113.6% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

Consolidated Water’s diversified manufacturing base in terms of customer concentration and type of products provides consistency in results. This is likely to have benefited third-quarter earnings.

The company’s third-quarter revenues are likely to have gained from the project to operate a wastewater treatment plant, which began in July 2023. Its quarterly performance is expected to have continued to benefit from full equity ownership of PERC Water Corporation. Improved tourist activity might have boosted demand and contributed to third-quarter earnings.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter earnings is pegged at 39 cents per share, indicating a year-over-year increase of 680%.

The Zacks Consensus Estimate for revenues is pinned at $37.02 million, indicating a year-over-year improvement of 47.8%.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Consolidated Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
 

Earnings ESP: The company’s Earnings ESP is -3.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Consolidated Water carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stock to Consider

Investors may consider the following player from the same sector as this has the right combination of elements to post an earnings beat this reporting cycle.

Ameren Corporation (AEE - Free Report) is expected to come up with an earnings beat when it reports third-quarter results on Nov 8, after market close. It has an Earnings ESP of +0.22% and a Zacks Rank #3 at present.

AEE’s long-term (three to five years) earnings growth rate is 6.61%. The Zacks Consensus Estimate for earnings is pegged at $1.8 per share, indicating a year-over-year increase of 3.5%.

Other Releases

American Water Works (AWK - Free Report) posted third-quarter 2023 operating earnings per share (EPS) of $1.66, which surpassed the Zacks Consensus Estimate of $1.55 by 7.1%.

AWK’s long-term earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pinned at $4.81 per share, indicating year-over-year growth of 6.7%.

SJW Group (SJW - Free Report) reported third-quarter 2023 operating EPS of $1.13, which beat the Zacks Consensus Estimate of 94 cents by 20.2%.

The Zacks Consensus Estimate for 2023 earnings is pinned at $2.54 per share, indicating year-over-year growth of 5%. SJW delivered an average earnings surprise of 20% in the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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