What caused CWCO's Q2 2024 EPS to drop sharply?

The EPS of Consolidated Water Co. Ltd. (CWCO) for Q2 2024 was $0.99, which is a notable figure considering that analysts had reduced their EPS estimates for the quarter from $1.98 to $1.35, indicating a potential decline of approximately 31.5%. However, the actual EPS of $0.99 indicates that the company's performance was better than the revised estimates. Roth Capital and Zacks Research had forecasted a lower EPS of $0.35 and $0.60, respectively. Therefore, the actual EPS of $0.99 reflects a robust performance compared to the forecasts.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CWCO|CWCO.O|Consolidated Water|2023 Q3|2600|0.54|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q1|66.66666666666669|0.4|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q2|115.21739130434783|0.99|185|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|CWCO|CWCO.O|Consolidated Water|2023 Q3|99.00471844131967|4.9854075E7|185|
|CWCO|CWCO.O|Consolidated Water|2023 Q4|87.3169579469144|5.3250905E7|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q1|20.750257309397092|3.968939E7|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q2|-26.579639432032675|3.2479158E7|185|

The discrepancy between the company's actual performance and the analysts' estimates can be attributed to several factors:

1. **Seasonal Factors**: CWCO's business is influenced by seasonal variations. The company sells more water during the first and second quarters when tourism is higher and local rainfall is less. This seasonal trend could have positively influenced the company's performance, leading to an EPS that was higher than anticipated.
2. **Operational Efficiency**: The company's use of the latest technology might have improved its operational efficiency, leading to better cost management and potentially higher profitability. This could be another factor that contributed to the higher-than-expected EPS.
3. **Market Conditions**: Changes in market conditions, such as fluctuations in demand or supply, could have also impacted CWCO's financial performance. For instance, if there was an increase in demand for water during the peak tourist season, it could have boosted the company's revenue and EPS.

In conclusion, CWCO's Q2 2024 EPS did not drop sharply as initially estimated by analysts. Instead, the company's performance exceeded expectations, likely due to seasonal factors, operational efficiency, and favorable market conditions.