Consolidated Water Co. Ltd. (NASDAQ: CWCO) Quarterly Earnings Preview

• Consolidated Water Co. Ltd. (NASDAQ:CWCO) anticipates a significant 48.8% decline in EPS and an 18.4% decrease in revenue year-over-year for the quarter ended March 2025.
• Analysts have revised the consensus EPS estimate downwards by 6.7% over the past month, potentially affecting investor sentiment and stock price.
• Key financial metrics include a P/E ratio of 13.14, a price-to-sales ratio of 2.78, and an earnings yield of approximately 7.61%.

Consolidated Water Co. Ltd. (NASDAQ:CWCO) is a key player in the water supply and treatment industry, known for its expertise in designing, constructing, and operating advanced water plants. As the company prepares to release its quarterly earnings on May 12, 2025, Wall Street anticipates earnings per share (EPS) of $0.22 and revenue of $32.3 million.

The expected EPS of $0.22 represents a significant 48.8% decline from the same period last year, as highlighted by analysts. This drop in earnings is accompanied by a projected revenue of $32.37 million, marking an 18.4% year-over-year decrease. Such declines indicate challenges in the company's financial performance for the quarter ended March 2025.

Over the past month, there has been a 6.7% downward revision in the consensus EPS estimate for CWCO. This revision suggests that analysts have adjusted their expectations, potentially impacting investor sentiment and the stock's short-term price performance. Historical data shows a strong link between earnings estimate revisions and stock price movements.

CWCO's financial metrics reveal a price-to-earnings (P/E) ratio of 13.14 and a price-to-sales ratio of 2.78. The enterprise value to sales ratio is 2.07, while the enterprise value to operating cash flow ratio stands at 7.59. The company's earnings yield is approximately 7.61%, indicating a reasonable return on investment.

Despite having a negligible debt-to-equity ratio, CWCO faces potential liquidity concerns due to its extremely low current ratio. Investors will be keen to hear more about these financial aspects during the company's conference call on May 13, 2025, where management will discuss the first-quarter results and address any questions.