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Consolidated Water (CWCO) Up 10.1% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Consolidated Water (CWCO - Free Report) . Shares have added about 10.1% 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 Q1 Earnings & Sales Beat Estimates
Consolidated Water Co. Ltd. reported first-quarter 2020 earnings of 19 cents per share, beating the Zacks Consensus Estimate of 15 cents by 26.7%.
Total Revenues
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.
Segment Details
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.
Financial Highlights
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 27.78% due to these changes.
VGM Scores
At this time, Consolidated Water has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, 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
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, 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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Consolidated Water (CWCO) Up 10.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Consolidated Water (CWCO - Free Report) . Shares have added about 10.1% 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 Q1 Earnings & Sales Beat Estimates
Consolidated Water Co. Ltd. reported first-quarter 2020 earnings of 19 cents per share, beating the Zacks Consensus Estimate of 15 cents by 26.7%.
Total Revenues
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.
Segment Details
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.
Financial Highlights
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 27.78% due to these changes.
VGM Scores
At this time, Consolidated Water has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, 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
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Consolidated Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.