Consolidated Water (CWCO) 2019 Earnings Fall Y/Y, Sales Up

Consolidated Water Co. Ltd. (NASDAQ:CWCO) reported 2019 earnings of 56 cents per share, declining 17.7% from the year-ago figure of 68 cents.

GAAP earnings in 2019 were 80 cents compared with 75 cents reported in 2018.

Total Revenues

The company’s total 2019 revenues came in at $68.8 million, up 4.7% from the year-ago figure of $65.7 million.

The year-over-year improvement can be attributed to strong contribution from its Retail and Manufacturing segments.

Segment Details

Retail revenues in 2019 increased 3.5% year over year to $26.5 million. This was due to a slight increase in the volume of water sold by Cayman Water and higher energy prices.

Bulk revenues came in at $26.9 million in 2019, down 13.5% from the prior-year figure. The decrease in revenues was due to lower rates.

Manufacturing revenues amounted to $13.6 million, up 86.3% 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 of $1.7 million were down 5.6% from the year-ago level.

Highlights of the Release

In 2019, total cost of revenues increased 4.1% year over year to $40.5 million.

General and administrative expenses increased 3.2% from the year-ago level to $19.4 million.

As of Dec 31, 2019, Consolidated Water’s cash and cash equivalents totaled $42.9 million, up from $31.3 million in the corresponding period of 2018.

Although the company is concerned of the impact of COVID-19 on the world economy and its business, it remains optimistic about long-term prospects.

Zacks Rank

Currently, Consolidated Water carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Here are some players from the water utility space that have reported fourth-quarter earnings. SJW Group (NYSE:SJW) and American States Water Company (NYSE:AWR) beat the Zacks Consensus Estimate by 3%, and 9.8%, respectively. However, American Water Works’ (NYSE:AWK) earnings were in line with estimates.

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