A month has passed by for the reason that final earnings report for Consolidated Water (CWCO). Shares have misplaced about 5.3% in that timeframe, underperforming the S&P 500.
Will the current unfavorable development proceed main as much as its subsequent earnings launch, or is Consolidated Water due for a breakout? Earlier than we dive into how traders and analysts have reacted as of late, let’s take a fast have a look at the newest earnings report so as to get a greater deal with on the essential drivers.
Consolidated Water’s Q2 Earnings & Gross sales Lag Estimates
Consolidated Water Co. Ltd. delivered second-quarter 2024 earnings per share of 26 cents, which lagged the Zacks Consensus Estimate of 34 cents by 23.5%. The underside line additionally decreased 44.7% from final 12 months’s 47 cents.
Whole Revenues
The corporate’s whole revenues for the quarter had been $32 million, which missed the Zacks Consensus Estimate of $37 million by 12.5%. The highest line declined 27.3% from the year-ago quarter’s determine of $44 million.
Phase Particulars
Retail revenues totaled $8.18 million, up 8.1% from $7.57 million within the year-ago quarter. The rise was resulting from an 8% enhance within the quantity of water offered.
Bulk revenues amounted to $8.44 million, down 0.5% from $8.48 million within the prior 12 months. The lower in bulk section revenues was resulting from a decline in vitality prices for CW-Bahamas. This lowered the vitality pass-through element of CW-Bahamas’ charges.
Manufacturing revenues for the quarter totaled $3.9 million, down 3.9% from $4.08 million within the earlier 12 months.
Companies revenues amounted to $11.9 million, down 50.6% from $24.1 million within the final 12 months. The lower in providers section revenues was resulting from a $16.5 million decline in plant building revenues.
Highlights of the Launch
Common and administrative bills elevated practically 10.4% to $6.6 million.
Web revenue from persevering with operations amounted to $11.5 million in contrast with $11.9 million within the year-ago quarter.
The quantity of retail water offered within the firm’s utility service space in Grand Cayman elevated 10% 12 months over 12 months. The corporate accomplished the development and commissioning of the brand new 2.6 million gallons per day Purple Gate desalination plant for the Water Authority of the Cayman Islands. It started working the ability beneath a 10-year operations and upkeep settlement.
Monetary Highlights
Money and money equivalents totaled $96.7 million as of Jun 30, 2024, in contrast with $42.6 million as of Dec 31, 2023. Working capital amounted to $131.2 million as of the identical date.
Whole long-term debt was $0.15 million as of Jun 30, 2024, decrease than $0.19 million at 2023-end.
Money movement from working actions within the first half of 2024 totaled $26.9 million in contrast with $4.5 million within the year-ago interval.
How Have Estimates Been Shifting Since Then?
It seems, estimates revision have trended upward through the previous month.
VGM Scores
Right now, Consolidated Water has a median Development Rating of C, although it’s lagging a bit on the Momentum Rating entrance with a D. Charting a considerably related path, the inventory was allotted a grade of C on the worth aspect, placing it within the center 20% for this funding technique.
Total, the inventory has an mixture VGM Rating of D. For those who aren’t targeted on one technique, this rating is the one you need to be all for.
Outlook
Estimates have been trending upward for the inventory, and the magnitude of those revisions seems promising. Notably, Consolidated Water has a Zacks Rank #3 (Maintain). We count on an in-line return from the inventory within the subsequent few months.
Efficiency of an Trade Participant
Consolidated Water belongs to the Zacks Utility – Water Provide business. One other inventory from the identical business, American Water Works (AWK), has gained 3.6% over the previous month. Greater than a month has handed for the reason that firm reported outcomes for the quarter ended June 2024.
American Water Works reported revenues of $1.15 billion within the final reported quarter, representing a year-over-year change of +4.7%. EPS of $1.42 for a similar interval compares with $1.44 a 12 months in the past.
American Water Works is predicted to submit earnings of $1.83 per share for the present quarter, representing a year-over-year change of +10.2%. During the last 30 days, the Zacks Consensus Estimate has modified +0.9%.
American Water Works has a Zacks Rank #2 (Purchase) based mostly on the general path and magnitude of estimate revisions. Moreover, the inventory has a VGM Rating of D.
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