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Group 1 - Consolidated Water (CWCO) closed at $34.23, reflecting a +1.84% increase from the previous day, outperforming the S&P 500's gain of 1.56% [1] - The company's shares gained 1.2% over the past month, underperforming the Utilities sector's 1.93% gain but outperforming the S&P 500's 0.41% increase [1] Group 2 - Upcoming financial results are expected to show an EPS of $0.24, a decline of 22.58% year-over-year, with revenue anticipated at $32.8 million, down 1.77% from the same quarter last year [2] - For the full year, earnings are projected at $1.13 per share and revenue at $133.33 million, representing changes of +0.89% and -0.48% respectively from the prior year [3] Group 3 - Recent analyst estimate revisions indicate a positive trend, with a 2.41% increase in the Zacks Consensus EPS estimate over the last 30 days, and the company currently holds a Zacks Rank of 2 (Buy) [5][3] - The Zacks Rank system has shown a strong track record, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5] Group 4 - Consolidated Water has a Forward P/E ratio of 29.66, which is a premium compared to the industry average Forward P/E of 22.7 [6] - The Utility - Water Supply industry is currently ranked 23 in the Zacks Industry Rank, placing it in the top 10% of over 250 industries [6][7]

Group 1 - Consolidated Water (CWCO) stock closed at $33.13, reflecting a -1.1% change from the previous day's closing price, underperforming the S&P 500, which lost 0.38% [1] - The stock has decreased by 0.06% over the past month, while the Utilities sector gained 2.46% and the S&P 500 increased by 4.06% [1] Group 2 - The upcoming earnings release is anticipated, with expected EPS of $0.24, representing a 22.58% decline from the prior-year quarter, and revenue forecasted at $32.8 million, indicating a 1.77% decrease year-over-year [2] - For the annual period, earnings are projected at $1.13 per share and revenue at $133.33 million, reflecting changes of +0.89% and -0.48% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates are crucial, as they reflect short-term business trends, with positive revisions indicating analyst optimism regarding business and profitability [4] - Adjustments in estimates are linked to stock price performance, and the Zacks Rank system has been established to leverage these changes for operational ratings [5] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks averaging an annual return of +25% since 1988; currently, Consolidated Water holds a Zacks Rank of 2 (Buy) [6] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 2.41% [6] Group 5 - Consolidated Water is trading at a Forward P/E ratio of 29.56, which is a premium compared to the industry average Forward P/E of 21.55 [7] - The Utility - Water Supply industry ranks in the top 6% of all industries, with a current Zacks Industry Rank of 14 [7] Group 6 - The Zacks Industry Rank evaluates the strength of industry groups by calculating the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Company Overview - Consolidated Water Co. Ltd. is a leading designer, builder, and operator of advanced water supply and treatment plants, with operations in the Cayman Islands, The Bahamas, and the British Virgin Islands, as well as in the United States [6] - The company is currently engaged in a $204 million design-build-operate project for a seawater desalination plant in Hawaii [6] New Board Appointments - The company announced the appointment of three new independent directors: Kim Adamson, Maria Elena Giner, and Gerónimo Gutiérrez Fernández, effective October 1, 2025 [1] - Kim Adamson brings nearly 30 years of experience in the water industry, including leadership roles in public water utilities and notable companies [2] - Maria Elena Giner has over 35 years of executive leadership experience in water infrastructure and capital planning, having administered a capital program exceeding $1 billion [3] - Gerónimo Gutiérrez Fernández has a strong background in infrastructure development and financing, having served as Mexico's ambassador to the U.S. and as Managing Director of the North American Development Bank [4] Corporate Governance Enhancement - The addition of the new directors is part of the company's ongoing initiatives to strengthen corporate governance and enhance expertise related to its business [5] - Board Chairman Wil Pergande expressed confidence that the new members will enhance the Board's capabilities and assist in executing strategies to increase shareholder value [5]

Economic Overview - Consumer confidence fell to 94.2 in September, a decline of 3.6 points month over month, missing the consensus estimate of 96 [4] - The Present Situation Index dropped 7 points to 125.4, indicating a negative assessment of current business and labor market conditions [4] - Short-term expectations for income, business conditions, and employment declined to 74.8, with readings below 80 suggesting a higher risk of recession [5] - Concerns over a shrinking labor market have negatively impacted consumer confidence, with job availability assessments declining for nine consecutive months [5] - High prices of goods, exacerbated by tariffs, continue to pressure consumer spending, while inflation remains a concern [6] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Consolidated Water Co. Ltd. (CWCO), NorthWestern Energy Group, Inc. (NWE), and Northwest Natural Holding Company (NWN), all carrying a Zacks Rank 2 (Buy) [2] - Recommended stocks are categorized as low-beta (beta greater than 0 but less than 1), suggesting a focus on low-beta stocks with high dividend yields and favorable Zacks Ranks [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.3% for the current year, with a current dividend yield of 2.05% and a beta of 0.75 [7][8] - **Consolidated Water Co. Ltd. (CWCO)**: Focuses on seawater desalination and water distribution in areas with scarce potable water. Expected earnings growth rate is 0.9% for the current year, with a current dividend yield of 1.60% and a beta of 0.58 [9][10] - **NorthWestern Energy Group, Inc. (NWE)**: Provides reliable energy to customers in Montana, South Dakota, and Nebraska. Expected earnings growth rate is 5.6% for the current year, with a current dividend yield of 4.54% and a beta of 0.40 [11][12] - **Northwest Natural Holding Company (NWN)**: Builds and maintains natural gas distribution systems, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a current dividend yield of 4.37% and a beta of 0.59 [13][14]

Core Insights - The average brokerage recommendation (ABR) for Consolidated Water (CWCO) is 1.67, indicating a position between Strong Buy and Buy, with 66.7% of recommendations being Strong Buy [2][14] - The Zacks Consensus Estimate for CWCO's earnings has increased by 6.3% over the past month to $1.12, reflecting analysts' growing optimism about the company's earnings prospects [13] Brokerage Recommendations - The ABR is calculated based on recommendations from three brokerage firms, with two out of three recommending Strong Buy [2] - Brokerage recommendations may not effectively guide investors, as studies indicate they often lack success in identifying stocks with high potential for price appreciation [5][10] Zacks Rank Comparison - Zacks Rank categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are strongly correlated with near-term stock price movements [8][11] - The Zacks Rank for CWCO is 2 (Buy), influenced by the recent increase in consensus earnings estimates [14] Timeliness and Freshness - The ABR may not always be up-to-date, while the Zacks Rank reflects timely revisions in earnings estimates, providing a more current indicator of future price movements [12]

Core Viewpoint - Consolidated Water Co. Ltd. has shown positive performance in its recent earnings report, with significant growth in earnings and revenues, leading to an optimistic outlook for the stock moving forward [2][3][10]. Financial Performance - The company reported Q2 2025 earnings per share (EPS) of 32 cents, exceeding the Zacks Consensus Estimate of 20 cents by 60% and improving 23.1% from the previous year's EPS of 26 cents [3]. - Total revenues for Q2 2025 reached $33.6 million, surpassing the Zacks Consensus Estimate of $33 million by 2.76%, and reflecting a year-over-year increase of 6.3% [4]. Segment Performance - Retail revenues increased by 6% to $8.6 million, driven by higher sales volumes, while bulk revenues decreased by 2% to $8.3 million [5]. - Manufacturing revenues saw a significant decline of 33% to $5.2 million, and services revenues fell by 4% to $11.4 million due to decreases in construction and consulting revenues [5]. Operational Highlights - Retail water sales from the Grand Cayman utility rose by 7%, attributed to reduced rainfall, population growth, and increased business activity [6]. - Gross profit for Q2 2025 was $12.83 million, up from $11.6 million in Q2 2024, while general and administrative expenses increased by nearly 14.7% to $7.6 million [6]. Financial Position - As of June 30, 2025, cash and cash equivalents totaled $112.3 million, up from $99.4 million at the end of 2024, with working capital at $137.4 million [7]. - Total long-term debt decreased to $0.05 million from $0.07 million at the end of 2024, and cash flow from operating activities for the first half of 2025 was $10.4 million, compared to $11.2 million in the previous year [7]. Market Sentiment - Recent estimates for the company have trended upward, with a consensus estimate shift of 26.79% [8]. - Consolidated Water holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [10]. Investment Scores - The company has a Growth Score of B and a Momentum Score of B, but a lower Value Score of D, placing it in the bottom 40% for value investment strategy [9]. - The aggregate VGM Score for the stock is B, which is relevant for investors not focused on a single strategy [9].

Core Points - Consolidated Water Co. Ltd. announced a quarterly cash dividend of $0.14 per share for Q4 2025, payable on October 31, 2025, to shareholders of record as of October 1, 2025 [1] Company Overview - Consolidated Water Co. Ltd. specializes in the development and operation of advanced water supply and treatment plants, including seawater desalination facilities in the Cayman Islands, The Bahamas, and the British Virgin Islands [2] - The company is currently engaged in a $204 million design-build-operate project for a seawater desalination plant in Hawaii [2] - In addition to water supply and treatment, the company manufactures and services a variety of products and provides design, engineering, management, and operational services for commercial and municipal water production, supply, and treatment, as well as industrial water and wastewater treatment [3]

Industry Overview - The Zacks Utility - Water Supply industry includes companies providing drinking water and wastewater services to various customers, including military bases [1] - Water utilities are essential for maintaining healthy living conditions by ensuring a constant supply of clean potable water and reliable sewer services [2] Investment Requirements - Water utility operators manage nearly 2.2 million miles of aging pipelines and require significant investments for maintenance and expansion, estimated at $1.25 trillion over the next 20 years [3] - The need for massive investments presents growth opportunities for operators in the water supply sector [3][4] Company Comparisons - Consolidated Water (CWCO) has a market capitalization of $534.5 million, while Global Water Resources (GWRS) has a market cap of $275.56 million [5] - CWCO's 2025 earnings estimate is $1.05 per share on revenues of $133.09 million, indicating a year-over-year decrease of 6.3% in earnings and 0.7% in revenues. GWRS's 2025 earnings estimate is 22 cents per share on revenues of $55.85 million, reflecting a 15.4% decline in earnings but a 6% growth in revenues [6] Financial Metrics - CWCO has a debt-to-capital ratio of 0.06%, significantly lower than GWRS's 61.14%, while the industry average is 50.04% [7] - The current ratio for CWCO is 5.24, indicating strong financial flexibility, compared to GWRS's 1.09 and the industry average of 0.9 [8] Dividend Yield - CWCO's dividend yield is 1.67%, while GWRS offers a higher yield of 3.03%, both exceeding the Zacks S&P 500 Composite average of 1.15% [11] Earnings Surprise History - CWCO has delivered an average earnings surprise of 40.1% over the last four quarters, whereas GWRS has experienced a negative earnings surprise of 6.1% [12] Stock Performance - In the past six months, CWCO shares have increased by 21.9%, while GWRS shares have decreased by 13%. The industry overall has risen by 11.5% during the same period [10][13] Conclusion - Both CWCO and GWRS are viable options for investment, focusing on water and wastewater services with potential for expansion. However, CWCO is favored due to its superior debt management, liquidity, and stock performance compared to GWRS [15]

Group 1 - Consolidated Water (CWCO) is a notable stock within the Utilities sector, currently outperforming the sector average in year-to-date returns [1][4] - The Utilities group ranks 4 in the Zacks Sector Rank, which evaluates 16 different sector groups [2] - CWCO has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2 - Over the past 90 days, the Zacks Consensus Estimate for CWCO's full-year earnings has increased by 16.2%, reflecting improved analyst sentiment [4] - CWCO has returned approximately 25.5% since the beginning of the calendar year, compared to an average gain of 14.1% for the Utilities sector [4] - Consolidated Water is part of the Utility - Water Supply industry, which ranks 46 in the Zacks Industry Rank, with an average gain of 18% this year [6] Group 3 - National Grid (NGG) is another Utilities stock that has outperformed the sector, with a year-to-date increase of 21.3% [5] - National Grid's consensus EPS estimate has risen by 6.3% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - The Utility - Electric Power industry, to which National Grid belongs, is ranked 84 and has gained 13.7% this year [6]