Consolidated Water reports in-line earnings, revenue beats estimates

Consolidated Water Co. Ltd. reported quarterly earnings that matched market expectations while revenue exceeded analyst estimates, according to preliminary results released on Monday.

Net income for the period was in line with the consensus forecast of $0.25 per share, the company said. Revenue totaled $62.4 million, surpassing the $60.1 million estimate compiled by analysts polled by Refinitiv.

The water utility operator attributed the revenue beat to higher billing volumes and rate adjustments implemented during the quarter. Operating expenses rose 3.2% year-over-year, primarily driven by increased maintenance costs and regulatory compliance spending.

Consolidated Water, which serves customers in the Caribbean and the U.S. Virgin Islands, reaffirmed its full-year guidance for revenue growth of 4% to 6% and earnings per share in the range of $0.95 to $1.05. The company did not provide updated guidance in its preliminary release.

Shares of Consolidated Water were down 1.8% in pre-market trading on Monday, following a 2.1% decline in the prior session. The stock has underperformed the S&P 500 Utilities Index by 3.4% over the past month.

Analysts at Stifel maintained a hold rating on the stock with a $14 price target, citing stable regulatory frameworks in its service areas as a key support factor.