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Consolidated Water (CWCO) Q2 Earnings & Sales Beat Estimates

·4-min read

Consolidated Water Co. Ltd. CWCO reported second-quarter 2022 operating earnings per share of 18 cents, surpassing the Zacks Consensus Estimate of 16 cents by 12.5%.

GAAP earnings in the quarter were 15 cents against a loss of 11 cents reported in the year-ago quarter.

Total Revenues

The company’s total revenues for second-quarter 2022 were $21.1 million, up 26.4% from the year-ago figure of $16.7 million. The year-over-year improvement was due to a strong contribution from the Bulk, Retail and Services segment.

Revenues in the reported quarter surpassed the Zacks Consensus Estimate of $19 million by 9.4%.

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise

 

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise
Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise

Consolidated Water Co. Ltd. price-consensus-eps-surprise-chart | Consolidated Water Co. Ltd. Quote

Segmental Details

Retail revenues for second-quarter 2022 increased 15% year over year to $6.5 million. This reflects an 8% increase in the volume of water sold and as a result of higher energy costs that increased the energy pass-through component of the company’s water rates, as well as a more favorable rate mix.

Bulk revenues were $8.4 million in second-quarter 2022, up 26% from the prior-year figure. The rise in revenues was due to an increase in energy costs for CW-Bahamas, which improved the energy pass-through component of CW-Bahamas’ rates.

Manufacturing revenues amounted to $1.06 million in second-quarter 2022, up 92.7% year over year. The year-over-year decline was due to higher project activity.

Services revenues were $5.1 million for second-quarter 2022, up 34% year over year. The improvement was due to increases in both plant design and construction revenues, and operating and maintenance revenues.

Other Details

The return of tourism to the Cayman Islands has increased the demand for water. As tourists continue to return, the demand for water will rise, benefiting Consolidated Water.

Gross profit for the second quarter of 2022 was $13.6 million, up 28.3% from $10.6 million for the year-ago period.

General and administrative expenses for second-quarter 2022 were up 4.4% from the year-ago level to $4.72 million.

Financial Highlights

Cash and cash equivalents as of Jun 30, 2022, were $49.1 million, up from $40.4 million as of Dec 31, 2021.

Long-term debt as of Jun 30, 2022, was $0.64 million compared with $0.15 million as of Dec 31, 2021.

CWCO distributed a quarterly dividend of 8.5 cents per share, totaling $1.3 million in dividends in the second quarter of 2022.

Zacks Rank

Consolidated Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

American Water Works Company AWK posted second-quarter 2022 operating EPS of $1.20, which surpassed the Zacks Consensus Estimate of $1.14 by 5.3%.

The Zacks Consensus Estimate for American Water Works’ 2022 and 2023 EPS implies year-over-year growth of 4.7% and 8.8%, respectively. American Water Works reported an average surprise of 5.2% in the last four quarters.

Essential Utilities Inc. WTRG reported second-quarter 2022 operating earnings per share (EPS) of 31 cents, which is in line with the Zacks Consensus Estimate.

The Zacks Consensus Estimate for Essential Utilities’ 2022 and 2023 EPS implies year-over-year growth of 6.5% and 6.6%, respectively.

Global Water Resources Inc. GWRS recorded earnings per share of 9 cents in the second quarter of 2022, which surpassed the Zacks Consensus Estimate of 5 cents by 80%.

The Zacks Consensus Estimate for Global Water Resources’ 2022 and 2023 EPS implies year-over-year growth of 18.8% and 5.3%, respectively. Global Water Resources reported an average surprise of 174.2% in the last four quarters.


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