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Pure Cycle (PCYO) Posts In-Line Q2 Loss, Grows Inorganically

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Pure Cycle CorporationPCYO posted a loss of a penny in the second quarter of fiscal 2017 (ended Feb 28, 2017), in line with the Zacks Consensus Estimate. The company had reported loss of a penny in the second quarter of fiscal 2016 as well.

Total Revenue

In the reported quarter, Pure Cycle recorded total revenue of $0.24 million, up 212.0% from the year-ago quarter figure. The upside was driven primarily by fracking water sales.

Highlight of the Release

Total operating expenses were up 2.1% year over year to $0.52 million, primarily due to a 17.5% increase in other expenses.

Interest income in the reported was $66,000, compared with $78,000 in the year-ago quarter.

Pure Cycle Corporation Price, Consensus and EPS Surprise

Pure Cycle Corporation Price, Consensus and EPS Surprise | Pure Cycle Corporation Quote

During the quarter, the company completed its first acquisition of water system and expanded operations in Elbert County. The company continues to grow organically at Sky Ranch.

Financial Update

As of Feb 28, 2017, Pure Cycle's cash and cash equivalents increased to $28.14 million from $27.89 million as of Aug 31, 2016.

Other long-term liabilities as of Feb 28, 2017 were $1.37 million, down from $1.39 million as of Aug 31, 2016.

Price Movement

Over the last six months, Pure Cycle underperformed the Zacks categorized Utility - Water Supply industry. The company's shares lost 0.2%, compared with the industry's gain of 9.5%.

Rising interest levels might make it difficult for the company to get the necessary or desired amount to fund capital improvements on favorable terms.

Upcoming Peer Releases

American Water Works AWK is expected to release first-quarter 2017 earnings on May 3. The Zacks Consensus Estimate for the quarter is pegged at 52 cents.

American States Water Company AWR is expected to release first-quarter 2017 earnings on May 3. The Zacks Consensus Estimate for the quarter is pegged at 32 cents.

Connecticut Water Service, Inc. CTWS is expected to release first-quarter 2017 earnings on May 8. The Zacks Consensus Estimate for the quarter is pegged at 35 cents.

Zacks Rank

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

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American States Water Company (AWR): Free Stock Analysis Report

Pure Cycle Corporation (PCYO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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