Brean Murray, Carret & Co. (BMC) lowered its EPS estimates on Consolidated Water Co. Ltd. (NASDAQ:CWCO), saying the company's fourth-quarter results disappointed.
The brokerage, which maintained its "Buy" rating and $13 target price, remains optimistic on the company's forward prospects with 2011 in the rear view mirror.
"We are now starting to see contributions from the Blue Hills expansion project, and the Mexico project is now "active", with CWCO now controlling 75 percent of the shares of NSC and again moving forward with the development of a 100 million gallon per day facility," BMC said.
The brokerage is of the view that the Blue Hills expansion will result in a 67 percent increase in capacity at the plant and will enhance bulk segment revenues and profitability in 2012 and beyond.
The company has deployed assets in Asia, where they are pursuing several projects in markets that have similar characteristics to their traditional Caribbean market, the brokerage added.
BMC revised its 2012 EPS estimates for the company to 61 cents from 62 cents.
The brokerage noted that the company's EPS in the fourth quarter of $0.06 was well short of its $0.14 estimate. Revenue of $13.6 million also fell short of its $15 million estimate, due to lower-than-expected revenue from the bulk water segment.
Consolidated Water develops and operates seawater desalination plants and water distribution systems. The company operates in three segments: retail water operations, bulk water operations and services operations.
On Monday, the stock advanced 1.57 percent to trade at $7.75.