Why Is Consolidated Water (CWCO) Down 0.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Consolidated Water (CWCO). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Consolidated Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Consolidated Water Q1 Earnings Miss Estimates, Revenues Decrease Y/YConsolidated Water Co. Ltd. delivered first-quarter 2026 earnings per share of 24 cents, which missed the Zacks Consensus Estimate of 27 cents by 11.11%. The bottom line also declined 22.58% from the year-ago period’s earnings of 31 cents.Total Revenues of CWCOCWCO’s total revenues for first-quarter 2026 were $30 million, missing the Zacks Consensus Estimate of $33.4 million by 10.18%. The top line also decreased 11.1% from the year-ago figure of $33.7 million.CWCO’s Q1 Segmental DetailsRetail revenues for the quarter decreased 8.86% to $8.6 million. The decrease was primarily due to a 10.2% decline in water sales volume because of significantly higher rainfall in Grand Cayman during the quarter compared with 2025.Bulk revenues increased 3.96% to $8.7 million. The slight growth was driven by new revenue contributions from the recently commissioned seawater desalination facility in Cat Island, the Bahamas.Manufacturing revenues decreased 76% to $1.4 million. The decline was mainly due to the lower total value of new purchase orders and, to a lesser extent, delays in the receipt and commencement of work related to these orders.Services revenues increased 11.64% to $11.3 million. The increase was mainly attributed to revenues generated under O&M contracts, which amounted to $8.9 million for the first quarter of 2026, up 15% from the prior-year quarter.Highlights of CWCO’s Q1 Earnings ReleaseThe company’s first-quarter 2026 revenues decreased due to lower contributions from its manufacturing and retail segments. These declines were partly offset by growth in the bulk water and services segment revenues.Gross profit for the first quarter of 2026 was $10.91 million, down 11.30% from $12.31 million in the first quarter of 2025. Total general and administrative expenses increased nearly 3.95% to $7.42 million.CWCO’s Financial HighlightsCash and cash equivalents totaled $126.3 million as of March 31, 2026, compared with $123.8 million as of Dec. 31, 2025.Total long-term debt was $0.005 million as of March 31, 2026, down from $0.03 million at 2025-end.Cash flow from operating activities during first-quarter 2026 totaled $6.5 million compared with $11.8 million in the year-ago period.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -16.98% due to these changes.VGM ScoresAt this time, Consolidated Water has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Consolidated Water has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerConsolidated Water belongs to the Zacks Utility - Water Supply industry. Another stock from the same industry, California Water Service Group (CWT), has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.California Water Service Group reported revenues of $214.57 million in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $0.07 for the same period compares with $0.22 a year ago.For the current quarter, California Water Service Group is expected to post earnings of $0.79 per share, indicating a change of +11.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.3% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for California Water Service Group. Also, the stock has a VGM Score of C.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks