Connecticut Water Service Inc. (CTWS - Free Report) reported second-quarter 2017 earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 7.3%. However, earnings were down 17.9% year over year.
In the quarter under review, Connecticut Water’s total revenue was $29.5 million, up 6.9% year over year, primarily on higher contribution from its Water Operation segment.
The year-over-year increase in revenues was due to benefits derived from the acquisition of the Heritage Village Water Company in Feb 2017 and the recovery of costs for completed infrastructure replacement projects.
Water Operations contributed $28.2 million in the second quarter to total revenue compared with $26.4 million in the prior-year quarter.
Services & Rentals contributed $1.28 million in the quarter compared with $1.21 million a year ago.
Highlights of the Release
In the second quarter, the company’s total operating expenses were $17.5 million, up nearly 15.2% year over year.
Connecticut Water’s utility operating income in the reported quarter decreased 5.4% year over year to $5.3 million.
The company is continuing with its inorganic growth strategy. In the first seven months of 2017, the company added 9,500 customers through two acquisitions.
As of Jun 30, 2017, Connecticut Water’s current assets were $33.2 million compared with $30.9 million as of Jun 30, 2016.
Net utility plant was worth $647.7 million as of Jun 30, 2017 compared with $568.4 million as of Jun 30, 2016.
Long-term debt as of Jun 30, 2017 was $205.3 million compared with $200.9 million as of Jun 30, 2016.
Connecticut Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of the Peers
Earnings from its peers in the second quarter were mixed. American Water Works (AWK - Free Report) missed the Zacks Consensus Estimate while Aqua America Inc.’s (WTR - Free Report) earnings were on par and American States Water Company (AWR - Free Report) surpassed the same.
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