Will CWCO's Q1 2025 EPS continue its growth trend?
4/5/2025 12:42am
**Consolidated Water's (CWCO) Q1 2025 EPS is unlikely to continue its growth trend.** Here's why:
1. **Recent Performance and Analyst Expectations**: CWCO's stock has experienced a decline of 9.9% since its last earnings report in June 2024. Analysts have dropped their Q1 2025 EPS estimates, indicating a potential downturn in earnings. The upcoming EPS is projected at $0.23, signifying a 46.51% drop compared to the same quarter of the previous year.
|code|Ticker|Name|Date|Diluted EPS|market_code|
|---|---|---|---|---|---|
|CWCO|CWCO.O|Consolidated Water|2023 Q2|0.46|185|
|CWCO|CWCO.O|Consolidated Water|2023 Q3|0.54|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q1|0.4|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q2|0.99|185|
|CWCO|CWCO.O|Consolidated Water|2024 Q3|0.28|185|
2. **Financial Challenges**: CWCO faced a significant decline in revenue and net income in 2024, with a 26% revenue drop and a 42% net income decrease. The profit margin also decreased from 17% in 2023 to 13% in 2024, primarily due to lower revenue. These financial challenges suggest that CWCO is struggling to maintain growth.
3. **Market Conditions**: The broader market conditions, including a loss in the Dow and Nasdaq, could further impact CWCO's performance. Despite a slight gain in CWCO's stock price, the overall market environment is not favorable for a quick rebound in earnings.
4. **Lack of Growth Projections**: The forecast for revenue growth over the next two years is only 25% per annum, which is below the industry average of 6.6%. This indicates a lack of strong growth drivers in the near term.
In conclusion, the combination of lowered EPS estimates, challenging financial data, and a lack of strong growth projections suggest that CWCO's Q1 2025 EPS is not expected to continue its growth trend.