Market Overview

Earnings Preview for Consolidated Water Co

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Consolidated Water Co (NASDAQ: CWCO) announces its next round of earnings this Tuesday, November 17. Here is Benzinga's everything-that-matters guide for this Tuesday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Consolidated Water Co reporting earnings of $0.15 per share on revenue of $19.15 million. In the same quarter last year, Consolidated Water Co reported EPS of $0.11 on revenue of $15.89 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 36.36% increase for the company. Sales would be up 20.52% on a year-over-year basis. Consolidated Water Co's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.11 0.15 0.14 0.15
EPS Actual 0.08 0.19 0.11 0.11
Revenue Estimate 17.95 M 17.50 M 17.10 M 17.95 M
Revenue Actual 19.09 M 20.73 M 17.61 M 15.89 M

Stock Performance

Over the past 52-week period, shares of Consolidated Water Co have declined 28.09%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Consolidated Water Co is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: Earnings