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Global Water Resources Reports Mixed Earnings Results

Global Water Resources (GWRS) reported quarterly earnings of $0.04 per share, missing estimates. Despite revenue growth, the earnings outlook remains uncertain, signaling potential impacts on stock prices.

Date: 
AI Rating:   5

Earnings Per Share (EPS): Global Water Resources, Inc. reported earnings of $0.04 per share, which is below the Zacks Consensus Estimate of $0.06 per share. This reflects a negative earnings surprise of -33.33% and is down compared to last year's EPS of $0.07. The company has surpassed consensus EPS estimates only once in the last four quarters.

Revenue Growth: In terms of revenue, the company achieved $13.25 million for the latest quarter, surpassing the Zacks Consensus Estimate by 4.34%. This is an increase from $12.37 million year-over-year, indicating positive revenue growth.

Market Performance: Shares of Global Water Resources have experienced a slight decline of 0.8% since the start of the year, which is relatively better than the S&P 500's decline of 1.8%, suggesting some resilience in its stock performance.

The company's future stock performance will likely be influenced by management's commentary during the earnings call and the market’s reaction to current earnings outlook. The Zacks Rank of #3 (Hold) suggests that the stock is expected to perform in line with the market, which indicates uncertainty regarding its short-term trajectory. The estimated next quarter's earnings is $0.05 per share on revenues of $12 million, with fiscal year estimates of $0.30 on $55 million.

The mixed outlook and earnings performance could lead investors to be cautious about investing in GWRS given the disappointing EPS yet competitive revenue growth. Industry outlook may also significantly impact performance, as the Utility - Water Supply sector currently ranks in the top 36% of the Zacks industries.

Stocks:  GWRS ARTNA