What trends are visible in CWCO's 2024 EPS performance?
4/5/2025 01:10pm
Consolidated Water's (CWCO) 2024 EPS performance shows a decline compared to the previous year, with trends indicating challenges in revenue and profitability.
1. **Decrease in EPS**: The EPS for 2024 was $1.13, which is a significant drop from the $1.95 reported in 2023. This indicates a weakening trend in the company's earnings performance.
2. **Revenue Decline**: The total revenue for 2024 was $134 million, a 26% decrease from the $180 million reported in 2023. This decline in revenue is a contributing factor to the decrease in EPS.
3. **Missed Analyst Expectations**: CWCO missed analyst estimates on both revenue and EPS. The company's revenue fell short by 3.6%, while the EPS exceeded expectations by 43%. This discrepancy suggests that while the EPS was better than anticipated, the overall financial performance was below par.
4. **Profit Margin Compression**: The profit margin for 2024 was 13%, down from 17% in 2023. This compression is directly related to the lower revenue and reflects the company's reduced profitability.
5. **Challenging Market Conditions**: The decline in revenue and EPS can be attributed to challenging market conditions and competitive pressures. Despite these challenges, the company's focus on cost control and operational efficiency is evident from the increase in cash reserves and working capital.
In conclusion, CWCO's 2024 EPS performance reflects a company facing headwinds in revenue growth and profitability, despite efforts to manage costs and maintain financial stability.