Consolidated Water Co. Ltd. (CWCO - Free Report) reported first-quarter 2020 earnings of 19 cents per share, beating the Zacks Consensus Estimate of 15 cents by 26.7%.
The company’s total first-quarter revenues came in at $20.7 million, up 21.8% from the year-ago figure of $17 million. The reported revenues also surpassed the Zacks Consensus Estimate of $18 million by 15%.
The year-over-year improvement can be attributed to strong contribution from its Retail, Services and Manufacturing segments.
Retail revenues for the first quarter increased 8.5% year over year to $7.3 million. This was due to a 10% increase in the volume of water sold by Cayman Water due to drought-like conditions on Grand Cayman.
Bulk revenues came in at $6.44 million, down 9.4% from the prior-year figure. The decrease in revenues was due to lower rates.
Manufacturing revenues amounted to $3.91 million, up 26.1% year over year. The year-over-year increase was due to a surge in the number of orders that resulted in expanded project production activity.
Services revenues were $3.1 million in the quarter compared with $0.1 million in the year-ago period. The increase was due to the addition of $3.0 million revenues from PERC as a result of acquisition of 51% of the company in late October 2019.
Highlights of the Release
During the quarter, Consolidated Water acquired the remaining 49% interest in Aerex to gain complete ownership of the company.
In the first quarter, total cost of revenues increased 23% year over year to $12.3 million.
General and administrative expenses increased 15.9% from the year-ago level to $5.1 million.
Although it is concerned about the impact of COVID-19 on the world economy and business, it remains optimistic about long-term prospects.
Cash and cash equivalents as of Mar 31, 2020 was $32.3 million, down from $42.9 million on Dec 31, 2019.
Long-term debt as of Mar 31, 2020 was $0.15 million compared with $0.06 million on Dec 31, 2019.
Cash used in operating activities in first-quarter 2020 was $9 million versus cash provided from operating activities was $5.8 million in the year-ago period.
Currently, Consolidated Water carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some players from the water utility space that have reported first-quarter earnings:
American Water Works (AWK - Free Report) and The York Water Company (YORW - Free Report) , each currently carrying a Zacks Rank #2 (Buy), beat earnings estimates by 3.1% and 34.8%, respectively.
Middlesex Water Company’s (MSEX - Free Report) earnings surpassed the Zacks Consensus Estimate by 15.8%.
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