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Consolidated Water (CWCO) Misses Q3 Earnings & Revenues

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Consolidated Water Co. Ltd. (CWCO - Free Report) reported third-quarter 2016 earnings of 12 cents per share, lagging the Zacks Consensus Estimate of 16 cents by 25%.

Total Revenue

In the quarter under review, Consolidated Water’s total revenue was $14.4 million, missing the Zacks Consensus Estimate of $16 million by 10%. Reported revenues were also marginally lower than the year-ago tally of $14.6 million.

Segment Details

Retail Water Operations revenues in the third quarter were down 7% year over year to $5.45 million. Volume of water sold in 2016 by the Cayman retail operations were up nearly 2% from the 2015 level. However, the decline in energy costs and adjustment of the Cayman retail base rates under the company's retail license was responsible for the revenue decline.

Bulk Water Operations revenues in the third quarter were down 6.3% year over year to $7.42 million due to lower contribution from the Bahamas and Cayman operations.

Services Operations revenues in the third quarter of $1.51 million were up significantly from the year-ago level of $0.85 million. The upside was driven by the addition of revenues from Aerex, which was acquired in the first quarter of the year.

Highlights of the Release

In the reported quarter, cost of revenues decreased 5.5% year over year to $8.46 million mainly due to lower cost of Retail and Bulk revenues, partially offset by lower cost of Services revenues.

Consolidated Water’s quarterly gross profit was $5.9 million, up 4.8% from the prior-year level. In the quarter under review, the company incurred general and administrative expenses of $4.5 million, up 28.6% primarily due to the addition of G&A expenses related to Aerex and an increase in project development expenses incurred by the company's Mexican subsidiary, N.S.C. Agua S.A. de C.V.

CONSOLTD WATER Price, Consensus and EPS Surprise

 

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

Financial Update

As of Sep 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

Connecticut Water Service Inc. (CTWS - Free Report) reported third-quarter 2016 earnings of 84 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by a penny.

American Water Works Company’s (AWK - Free Report) third-quarter earnings per share of $1.05 beat the Zacks Consensus Estimate of $1.00 by 5%.

Aqua America Inc.’s (WTR - Free Report) third-quarter earnings of 41 cents per share were 5.1% higher than the Zacks Consensus Estimate of 39 cents.

Zacks Rank

Consolidated Water Company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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