Consolidated Water Co. Ltd. CWCO is scheduled to release second-quarter 2024 results on Aug 15. The utility company delivered an earnings surprise of 10.26% in the last reported quarter.
Let’s discuss the factors that are likely to impact the upcoming quarterly results.
Factors to Consider
Earnings are likely to have benefited from increased production capacity and rising demand from the expanding residential population. The completion of a wastewater treatment facility in Arizona is expected to have provided additional reclaimed water to the company for different uses.
CWCO’s new desalination plant provided 2.64 million gallons of potable water per day, which is expected to have had a positive impact on earnings. In addition, its long-term contracts are likely to have provided recurring revenues, thereby boosting its top line and margins.
Expectations
The Zacks Consensus Estimate for second-quarter sales is pegged at $37.1 million, which indicates a decrease of 16.1% from the year-ago reported number.
The consensus estimate for earnings is pegged at 34 cents per share, which indicates a decrease of 27.7% from the prior-year quarter’s reported actuals.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Consolidated Water this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as seen below.
Consolidated Water Co. Ltd. Price and EPS Surprise
Consolidated Water Co. Ltd. price-eps-surprise | Consolidated Water Co. Ltd. Quote
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2. You can see the complete list of Zacks Rank #1 stocks here.
Recent Releases
Investors may consider the following players from the same industry, which have posted an earnings beat this reporting cycle.
California Water Service Group CWT reported second-quarter adjusted operating earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 79.49%.
The consensus estimate for 2024 earnings is pegged at $3.25 per share, which indicates year-over-year growth of 257.1%. It delivered an average earnings surprise of 125.4% in the trailing four quarters.
American States Water Company AWR reported second-quarter adjusted operating earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 84 cents by 1.19%.
The consensus estimate for 2024 earnings is pegged at $3.03 per share, which indicates year-over-year growth of 6.3%. It delivered an average earnings surprise of 3.4% in the trailing four quarters.
SJW Group SJW reported second-quarter adjusted operating earnings of 66 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents by 15.79%.
The consensus estimate for 2024 earnings is pegged at $2.76 per share, which indicates year-over-year growth of 3%. It delivered an average earnings surprise of 9.3% in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American States Water Company (AWR) : Free Stock Analysis Report
Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report
SJW Group (SJW) : Free Stock Analysis Report
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