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Consolidated Water (CWCO) Up 3.6% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Consolidated Water (CWCO - Free Report) . Shares have added about 3.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Consolidated Water due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Consolidated Water Q3 Earnings & Sales Miss Estimates

Consolidated Water Co. Ltd.  reported third-quarter 2019 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 16 cents. The bottom line also declined 31.3% from the year-ago earnings of 16 cents.

Total Revenues

The company’s total revenues in third-quarter 2019 came in at $15.9 million, down 12.1% from the year-ago figure of $18.1 million. Total revenues also missed the Zacks Consensus Estimate of $18 million by 11.7%.

The year-over-year decline can be attributed to lower contribution from all segments, except the retail segment.

Segment Details

Retail revenues in third-quarter 2019 increased nearly 0.5% year over year to $6.27 million.

Bulk revenues came in at $6.5 million in third-quarter 2019, down 16.7% from the prior-year figure.

Manufacturing revenues amounted to nearly $3.1 million, down 5.7% year over year.

Services revenues of $0.01 million were down 98.8% from the year-ago level.

Highlights of the Release

In third-quarter 2019, total cost of revenues increased 15.6% year over year to $9.2 million.

General and administrative expenses decreased 7.1% from the year-ago quarter to $6.7 million.

As of Sep 30, 2019, Consolidated Water’s cash and cash equivalents totaled $41.9 million, up from $31.3 million on Dec 31, 2018.
 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, Consolidated Water has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Consolidated Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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