Consolidated Water (CWCO) Q2 Earnings & Sales Lag Estimates

Core Insights - Consolidated Water Co. Ltd. (CWCO) reported second-quarter 2024 earnings per share of 26 cents, missing the Zacks Consensus Estimate of 34 cents by 23.5% and down 44.7% from 47 cents in the previous year [1] - Total revenues for the quarter were $32 million, falling short of the Zacks Consensus Estimate of $37 million by 12.5% and declining 27.3% from $44 million in the same quarter last year [2] Revenue Breakdown - Retail revenues increased to $8.18 million, up 8.1% from $7.57 million in the year-ago quarter, driven by an 8% increase in the volume of water sold [3] - Bulk revenues slightly decreased to $8.44 million, down 0.5% from $8.48 million in the prior year, attributed to lower energy costs affecting CW-Bahamas' rates [3] - Manufacturing revenues totaled $3.9 million, a decrease of 3.9% from $4.08 million in the previous year [4] - Services revenues significantly dropped to $11.9 million, down 50.6% from $24.1 million last year, primarily due to a $16.5 million decline in plant construction revenues [4] Financial Highlights - General and administrative expenses rose nearly 10.4% to $6.6 million [5] - Net income from continuing operations was $11.5 million, compared to $11.9 million in the year-ago quarter [5] - Cash and cash equivalents increased to $96.7 million as of June 30, 2024, from $42.6 million as of December 31, 2023 [7] - Working capital stood at $131.2 million as of the same date [7] - Total long-term debt was $0.15 million as of June 30, 2024, down from $0.19 million at the end of 2023 [7] - Cash flow from operating activities in the first half of 2024 was $26.9 million, compared to $4.5 million in the year-ago period [7] Operational Developments - The volume of retail water sold in Grand Cayman increased by 10% year over year [6] - The company completed the construction and commissioning of a new 2.6 million gallons per day desalination plant for the Water Authority of the Cayman Islands, operating under a 10-year operations and maintenance agreement [6]