iHub News
2月前
Consolidated Water (CWCO) Shares Slip After Quarterly Results Miss ExpectationsMay 12, 2026 8:49 AM
IH Market News Shares of Consolidated Water Co. Ltd. (NASDAQ:CWCO) declined in after-hours trading on Monday after the water utility and desalination company reported first-quarter results that came in below analyst forecasts.The stock fell 2.3% following the earnings release.Adjusted earnings per share totaled $0.24, missing consensus estimates of $0.41, while quarterly revenue reached $30.0 million, well below market expectations of $55 million.Revenue declined 11% year-on-year from $33.7 million in the first quarter of 2025. Manufacturing and Retail Segments Weigh on Revenue The decline was driven primarily by weakness in the company’s manufacturing and retail operations.Manufacturing revenue dropped 76% year-on-year to $1.4 million, reflecting lower volumes of new purchase orders and differences in project timing compared with the previous year.Retail revenue also fell 9% to $8.6 million after unusually heavy rainfall in Grand Cayman reduced water demand, leading to a 10.2% decline in water volumes sold.“In Q1, consolidated revenue declined due to revenue declines in our manufacturing and retail segments,” said CEO Rick McTaggart. “Manufacturing revenue was lower due to the timing of receipt of new purchase orders for 2026 projects compared to last year.” Bulk Water and Services Operations Show Growth Despite the weaker overall results, several business areas posted growth during the quarter.Bulk revenue increased 4% to $8.7 million, supported by operations at a new seawater desalination facility located on Cat Island in The Bahamas.Services revenue rose 12% to $11.3 million, while operations and maintenance revenue climbed 15% to $8.9 million.The company said growth in its maintenance segment was partly driven by a new three-year contract secured with a California municipality in November 2025. Profitability Declines but Balance Sheet Remains Strong Net income from continuing operations attributable to shareholders came in at $3.8 million, or $0.24 per diluted share, compared with $4.9 million, or $0.31 per diluted share, in the same period last year.Gross profit declined to $10.9 million, representing 36% of total revenue, versus $12.3 million, or 37% of revenue, in the prior-year quarter.As of March 31, 2026, Consolidated Water reported cash and cash equivalents of $126.3 million and working capital totaling $144.3 million.Consolidated Water Company stock price Original: Consolidated Water (CWCO) Shares Slip After Quarterly Results Miss Expectations
mc67
12年前
Town of Willits, hit severely by the California drought, is racing to develop groundwater wells, but the source is polluted by naturally occurring arsenic.
WILLITS, Calif. — In this small logging town in Northern California's redwood country, small blue signs urging water conservation are almost everywhere you look.
California drought has communities in crisis
California drought has communities in crisis
1 day ago 1:49 Views: 36k AP Online Video
Just south of Willits, in one of the state's most verdant corners, crows and other birds peck at dry ground that should be covered in water at the city's Centennial Reservoir, which is less than a third full. The creek that feeds it has slowed to a trickle.
"It's common at this time of year for the water to be going over the cement wall right here. In fact, we'd be standing in water," said Bruce Burton, a Willits city councilman, gesturing toward the small cement dam in the creek. "In the 20 years I've been in local government, we've never experienced this kind of condition."
Related: Farmers idle cropland due to drought
Though some rain was falling Thursday and predicted to last through the weekend in the north and central parts of the state, California remains in the midst of an historic drought. The state's Department of Public Health says 17 rural areas including Willits — a town of about 5,000 people that usually sees about 50 inches of rain a year — are dangerously low on water, and officials expect that number to grow.
Drought: Forrest Clark, 25, loads five gallon bottles of water, purchased at a local store, into his car in Willits, Calif.AP Photo: Rich Pedroncelli
Forrest Clark, 25, loads five gallon bottles of water, purchased at a local store, into his car in Willits, Calif.
In addition to declaring a drought emergency, California has canceled water deliveries beginning in the spring from the state's water system to farms and thirsty cities and shut down fishing in dozens of streams to protect imperiled salmon and steelhead.
The emergency has become a disruption to everyday life in Willits, a Mendocino County locale known as the final resting place of the racehorse Seabiscuit. City leaders have banned lawn watering and car washing, mandated all residents cut water use dramatically and asked restaurants to serve the precious resource only upon request and to conserve, such as by using paper plates.
Adrienne Moore, Willits city manager, said some relief is expected from the current storm.
"But we would need several similar storms to really pull us out of this drought crisis," he said.
While California sees cycles of drought normally, scientists say the dry weather since Oct. 1 appears to be unique in its severity.
"According to tree ring records, this water year, which began Oct. 1, really stands out as one of the worst single years in the last 500 years," said Lynn Ingram, author of "The West Without Water" and a University of California earth science professor.
"This year, the drought is impacting places more than we've ever seen, at least that I've come across in my research," she added.
Of the 17 water-starved rural agencies, three are in rainy Mendocino County and are districts that rely largely on rainwater to fill their reservoirs. Other areas include parts of Fresno, Kern and Santa Cruz counties.
After a record dry 2013, Mendocino County leaders were the first in California to declare a drought emergency, which they did on Jan. 7.
Things are so scarce that the sheriff's office is on alert for water bandits. During the 2009-10 drought, authorities caught thieves pumping water from Lake Mendocino into trucks. The reservoir is currently about 37 percent full, according to county officials.
"Water theft is a big concern, so we're doing public announcements and have a line to call for reports to the Sheriff's Department," said Carre Brown, a Mendocino County supervisor. "All deputies are on the watch."
Unlike many of the other communities facing water woes, Willits doesn't have readily accessible groundwater.
Officials are racing to develop two groundwater wells within city limits, but the water in both sources is polluted by naturally occurring arsenic and other minerals, so the city needs an expensive treatment facility to make it potable. The state public health department is testing the water to help determine what kind of treatment is needed.
Ron Owens, a spokesman for the state public health department, said officials are helping struggling towns like Willits identify other water options, like connecting with other water systems if need be. It also has some emergency funding available.
Charles Davison, a retired high school principal, installed a pump on a unused well on to help supplement his household water supply at his home in Willits, Calif.AP Photo: Rich Pedroncelli
Charles Davison, a retired high school principal, installed a pump on a unused well on to help supplement his household water supply at his home in Willits, Calif.
Meantime, officials say people in the bucolic town seem to be following the mandatory conservation orders.
Even the coin-operated car wash is only offering recycled water.
"We have been rationing severely. No plants get watered. That's over. Turned off the toilet. I haven't washed my hair for two weeks," said Willits resident Andrea Onstad, who was washing her car Monday afternoon.
A few blocks down at Gribaldo's diner on the city's Main Street, customers sat at tables with no water glasses. A sign on the wall warned of the drought emergency — water was only available upon request.
The water shortage has changed everything for people in Willits — even how they spend their free time at home.
At Jim Harden's house, his lawn is splotched with brown spots, and empty flower pots usually stuffed with colorful annuals are stacked high. He's even unhooked his drip irrigation system.
"We're very concerned. If we totally run out of water, what are we going to do? Go to another community?" Harden, 78, said, standing in his small greenhouse. "It's frightening."
Emerging Growth
13年前
Morgan Stanley (NYSE: MS) recently released research that suggests it could take years for unemployment to reach a level that will prompt the Fed to finally raise rates. In December the Federal Open Market Committee established a rate of 6.5% as the target at which it will begin raising the Fed funds rate (currently 0 to 0.25%). The middle-of-the-road scenario, which assumes no change in the labor force participation rate (now 63.6%) and average job creation of 150,000 monthly, projects 6.58 years.
There are multiple variables, of course. A falling participation rate—which ironically enough would typically be prompted by a worsening economy—could bring unemployment to 6.5% sooner, assuming poorer conditions did not simultaneously crush job creation. Conversely, a rise in the participation rate back to the 2012 level of 64.2% would turn that 6.5 year timeline into 16 years if there were no corresponding improvement in job creation. The Fed’s own figures show unemployment falling by 0.22% annually if GDP growth is in the 2.25% to 2.75% range, which also puts 6.5% between five and six years away.
A predictable interest rate environment has many implications, but we’re going to examine what it means for a very capital-intensive industry: utilities. Aside from the direct benefit of low rates for financing equipment upgrades and expansion, with paltry rates on most fixed income investments a solid, dividend-paying sector like utilities becomes more attractive.
One candidate is Chesapeake Utilities Corp. (NYSE:CPK), not to be confused with the much larger Chesapeake Energy (NYSE:CHK). Chesapeake Utilities is engaged in natural gas and some electric distribution up and down the Eastern Seaboard from Delaware to Florida, and also operates natural gas pipelines in the Northeast. With low long-term natural gas prices, the lion’s share of new electrical generation is based on natural gas, and there is an opportunity to replace higher-priced home heating options like heating oil with cheaper and more environmentally friendly gas.
Chesapeake is now at a P/E of 17.1, slightly below the 18.5 of its peer group. What is striking is that its long-term debt to equity is 0.4 compared to 0.8 for its peer group and 1.1 for the industry. This means the company has the elbow room to accomplish infrastructure upgrades or expansion with inexpensive capital.
At this point the stock is only 2.15% off its 52-week high, its last close at 47.87, and for most of the first half of 2012 it traded in a range between 40 and 43. Consequently, it will need to come down slightly to be a bargain. Chesapeake is paying a 0.365 quarterly dividend.
Water is an increasingly contested resource in many parts of the world and even the U.S., particularly the West. One company providing water to what are essentially captive markets is Consolidated Water Co., Ltd. (NASDAQ:CWCO). Consolidated operates in Belize, the Bahamas, the Caymans, and the British Virgin Islands, providing retail and commercial water supplies with seawater desalinization plants. Thomson Reuters upgraded the stock on January 11, but it is still at a 4 out of 10 (the low end of neutral); Second Opinion upgraded Consolidated to Long on January 14.
At this point the stock is only 6.06% off its 52-week high but 27.31% off its 52-week low, so based on price performance over the trailing twelve months, it seems likely that Consolidated will head lower soon, at which point it will become a better buy. Its P/E of 19.2 is slightly below the industry average of 20.8, but more significantly, like Chesapeake Consolidated has minimal debt at this time. Total debt to equity is only 0.1 versus 3.3 for its peers, which means it is well-positioned to take advantage of low capital market rates.
Utilities in general have suffered from the weak housing market, but for companies like these that have low long-term debt ratios the current low-cost capital market offers an opportunity. Should either of them decide to leverage this opportunity, such a move would make them even more attractive.
See the full story and more here... http://emerginggrowth.com/investing_today/years-of-low-interest-rates-ahead-check-out-dividend-paying-utilities/01/24/2013
Pro-Life
16年前
The James Bond Investor: Water!
By Matthew Brown November 8, 2010
http://www.fool.com/investing/general/2010/11/08/the-james-bond-investor-water.aspx
I love James Bond. I also love that the film series has generated some investment ideas, which may seem odd if you think I'm talking about a tricked-out Aston Martin that fires missiles. I'm not.
In fact, the villain in Quantum of Solace offers a Foolish investment strategy in plain English. One of his goals is to control Bolivia's water supply. That's when it hit me: The villain goes to such great lengths to control fresh water because it's just like oil – the world doesn't have an endless supply. There are secular movements afoot that could restrict water supply going forward, such as population growth, with some estimates putting annual increases at 57 million.
So it occurred to me that I could become a super-villain super-investor if I could figure out how to profit from a world where water might become scarce.
Muuu-wahahahahaaha!
Rubbing my hands together, I hunted for desalination providers. Consolidated Water Company (Nasdaq: CWCO) caught my eye. It produces desalinized water for Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bermuda. Analysts project five-year earnings growth of 20%, the company produces modest free cash flow, and has $25 million of net cash. The company also feels confident enough in its business to pay out a 2.9% dividend.
On the larger side, a French company called Veolia (NYSE: VE) also makes sense. They are more diversified, also operating in Environmental and Energy Services as well as Transportation. They partnered with IDE Technologies Ltd., an Israeli company, built the world's largest desalination plant in Israel. Makes sense putting one in a desert region, no? Thanks to an aggressive efficiency plan, Veolia's financials are increasingly solid, the company shows a profit, and has strong free cash flow. Plus it merits a full five-star rating in Motley Fool CAPS.
As Fools know, sometimes it pays to invest in the companies that provide the nuts and bolts for other businesses. Somebody has to provide the technology for desalination plants to work, so that's why Energy Recovery (Nasdaq: ERII) is potable. The company "serves engineering, procurement, and construction firms, which design and build desalination plants, as well as original equipment manufacturers that supply equipment and packaged solutions for small to medium-sized desalination plants." Energy Recovery is still small, and its profits have been erratic, but free cash flow is at $5 million in 2009, and the company has over $55 million in cash and virtually no debt.
Purification technology is another big milestone for liquid-driven villains. Calgon Carbon Corporation (NYSE: CCC) goes beyond purifying water. They also purify and deodorize air, food, and other beverages. Analysts project nearly 23% compounded earnings growth over the next five years, the company has a net cash position, and over $30 million in 2009 free cash flow.
Even villains must diversify
For those not ready to make the pure-play leap into super-villainy, there are more diversified alternatives. Heck, even General Electric (NYSE: GE) is into desalination, along with purification and wastewater infrastructure. PowerShares Global Water (NYSE: PIO) and Guggenheim S&P Global Water (NYSE: CGW) are ETFs that invest in a variety of water-related companies.
The takeaway is that there are plenty of ways to take advantage of water scarcity. Small-cap loving Fools can find opportunity in this sector, while more conservative investors can scoop up diversified plays. If pressed, I'd personally go for Calgon. Purification of multiple liquids for consumption is built-in diversification, and I like the financials.
Of course, Fools should engage all the resources of Her Majesty's Secret Service when investigating companies with complex technologies like these. A lack of due diligence can derail even the most evil of plans.
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