Consolidated Water Faces Challenging EPS and Revenue Projections

A report reveals Consolidated Water (CWCO) is expected to post a significant EPS decline of 52.73% and a 36.14% drop in revenue for its upcoming earnings report, suggesting challenging times ahead for the company.

Date: 01-10-2024

AI Rating: 4

The report indicates several concerning metrics for Consolidated Water (CWCO) that could impact its stock performance adversely.

Earnings Per Share (EPS): The upcoming earnings report is anticipated to show an EPS of $0.26, reflecting a steep decline of 52.73% compared to the same period last year. This stark drop signals potential profitability challenges, which may negatively influence investor sentiment.

Revenue Growth: The expected quarterly revenue of $31.84 million suggests a significant decrease of 36.14% year-over-year. Such a decline can be alarming for investors and typically leads to reduced expectations for future growth, adversely affecting stock desirability.

Full-year Estimates: The Zacks Consensus Estimates forecast full-year earnings of $1.25 per share and revenues of $137.65 million, which also indicate declines of 35.23% and 23.62%, respectively, compared to the previous year. This persistent trend of falling earnings and revenue could contribute to a negative outlook from investors.

Valuation Metrics: Currently, CWCO trades at a Forward P/E ratio of 20.08, slightly below its industry's Forward P/E of 20.94. However, the PEG ratio stands at 2.51, lower than the industry average of 3.26, which may suggest that CWCO is slightly undervalued relative to its earnings growth expectations.

Despite the above metrics, CWCO's Zacks Rank of #3 (Hold) reflects a neutral stance. The stagnant EPS consensus estimate over the past month signals a lack of positive momentum.

Stocks: CWCO