Why did CWCO's Q4 2024 EPS decline unexpectedly?

The decline in Consolidated Water Co. Ltd.'s (CWCO) Q4 2024 Earnings Per Share (EPS) can be attributed to **Seasonal Factors and Business Segment Performance**.

1. **Seasonal Factors**: The demand for water typically decreases in the fourth quarter due to seasonal factors. This reduction in demand can lead to lower sales and subsequently affect the company's profitability, resulting in a lower EPS.
2. **Business Segment Performance**: While the Bulk segment's earnings are expected to be better due to new contracts, the Retail segment's earnings are anticipated to be low. The Services segment has seen a significant revenue decrease. The overall impact of these segment performances can lead to a decline in EPS.
3. **Comparative Analysis**: When comparing the Q4 2024 EPS with the previous year, there is a notable decrease. For instance, the EPS was $0.54 in the same quarter of the previous year, whereas in Q4 2024, it was lower at $0.28. This indicates a consistent downward trend in EPS over the past year.
4. **Revenue Decline**: The total revenues for 2024 were $134 million, which is a significant decrease from the previous year's $180.2 million, down by 25.6%. This decline in revenue can directly contribute to a lower EPS as the company's income is lower than expected.
5. **Specific Factors**: The company's Services segment revenue decreased significantly, primarily due to the completion of major construction contracts. This suggests that the company may have had fewer projects or contracts contributing to revenue in the quarter.

In summary, the unexpected decline in CWCO's Q4 2024 EPS can be attributed to a combination of seasonal factors, business segment performance, and specific revenue-related factors. These elements, either directly or indirectly, influence the company's profitability and, consequently, its EPS.