Consolidated Water (CWCO) Exceeds Market Returns: Some Facts to Consider

Core Viewpoint - Consolidated Water (CWCO) is facing significant declines in earnings and revenue, with upcoming earnings expected to show a substantial drop compared to the previous year [2][3]. Company Performance - CWCO's stock closed at $24.65, reflecting a gain of 0.86% from the previous trading session, outperforming the S&P 500's gain of 0.27% [1]. - The stock has decreased by 2.9% over the past month, underperforming the Utilities sector's loss of 2.82% and the S&P 500's gain of 2% [1]. Earnings Estimates - Analysts anticipate an EPS of $0.26 for the upcoming earnings report, indicating a 52.73% decline year-over-year [2]. - Revenue is projected at $31.77 million, representing a 36.27% decrease from the same quarter last year [2]. Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $1.25 per share, down 35.23% from the prior year, with revenue expected to be $137.5 million, reflecting a 23.7% decline [3]. Analyst Estimates - Recent changes in analyst estimates for CWCO are crucial as they reflect the shifting dynamics of the company's business patterns [4]. - Positive adjustments in estimates suggest a favorable outlook on the company's health and profitability [4]. Zacks Rank and Valuation - CWCO currently holds a Zacks Rank of 4 (Sell), indicating a less favorable investment outlook [6]. - The company is trading at a Forward P/E ratio of 19.5, which is lower than the industry average of 20.55 [7]. - CWCO's PEG ratio stands at 2.44, compared to the industry average PEG ratio of 3.16 [7]. Industry Context - The Utility - Water Supply industry, to which CWCO belongs, ranks in the top 35% of all industries according to the Zacks Industry Rank [8]. - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8].