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Consolidated Water (CWCO) Misses Q2 Earnings Estimates

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Consolidated Water Co. Ltd.  (CWCO - Free Report) reported second-quarter 2016 earnings of 15 cents per share, missing the Zacks Consensus Estimate of 17 cents by 11.8%. Second-quarter 2016 earnings were on par with the year-ago figure.

Total Revenue

In the quarter under review, Consolidated Water’s total revenue was $15 million, lower than the Zacks Consensus Estimate of $18 million by 16.7%.

Segment Details

Retail Water Operations revenue in the second quarter was up 2% year over year to $6.3 million.

Bulk Water Operations revenue in the second quarter was down 9.3% year over year to $7.44 million.

Services Operations revenue in the second quarter was up significantly to $1.67 million from $0.15 million.

CONSOLTD WATER Price, Consensus and EPS Surprise

CONSOLTD WATER Price, Consensus and EPS Surprise | CONSOLTD WATER Quote

Highlights of the Release

In the reported quarter, cost of revenues increased 3.5% year over year to $8.8 million mainly due to higher cost of Retail and Services revenues, partially offset by lower cost of Bulk revenues.

Consolidated Water’s quarterly gross profit was $6.5 million, up 10.2% from the prior-year level, primarily due to better performance at the Retail and Services segments.

In the quarter under review, the company incurred general and administrative expenses of $4.9 million, up 32.4% primarily due to the addition of G&A expenses of Aerex and an increase in project development expenses incurred by the company's Mexican subsidiary, N.S.C. Agua S.A. de C.V.

Financial Update

As of Jun 30, 2016, Consolidated Water’s cash and cash equivalents were $37.1 million, down from $44.8 million as of Dec 31, 2015.

Peer Releases

American Water Works Company’s (AWK - Free Report) second-quarter earnings per share of 77 cents were 6.9% higher than the Zacks Consensus Estimate of 72 cents.

Aqua America Inc.’s second-quarter earnings of 33 cents per share were on par with the Zacks Consensus Estimate.

Connecticut Water Service Inc. reported second-quarter 2016 earnings of 89 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 27.1%.

Zacks Rank

Consolidated Water Company currently has a Zacks Rank #3 (Hold).

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