Consolidated Water Q2 revenue falls on manufacturing segment weakness
CWCO•Outlook
- Company expects manufacturing revenue to improve in future periods based on current backlog
- Construction on Hawaii desalination project expected to start later this year
- Company sees growth opportunities in U.S. and Caribbean water infrastructure markets
Overview
- Water treatment operator Q2 revenue fell 2% yr/yr
- Q2 net income from continuing operations dropped to $4.0 mln from $5.2 mln
- Manufacturing segment revenue declined 49%, offsetting gains in retail, bulk, and services
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $32.90 mln | $30.60 mln (1 Analyst) |
| Q2 Gross Profit | $11 mln | ||
| Q2 Net Income from Cont Ops | $4 mln |
The one available analyst rating on the shares is buy. The average consensus recommendation for the water & related utilities peer group is buy.
Wall Street's median 12-month price target for Consolidated Water Co Ltd is $43.00, about 41% above its August 7 closing price of $30.49. The stock recently traded at the next 12-month earnings vs. a P/E of 26 three months ago.
