Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Consolidated Water Co. Ltd Shares Took a Spill

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Consolidated Water Co. Ltd (NASDAQ: CWCO  ) were in the toilet today, falling as much as 21% after coming up short in its earnings report.

So what: The Caribbean water supplier missed on both top and bottom lines, delivering earnings per share of $0.06, short of estimates at $0.08, while revenue fell 2.5%, to $15.4 million, below the consensus at $16 million. Higher-than-normal rainfall at its home island on the Caymans seemed to be the culprit, as that dampened demand for its water. Sales in its retail division, the one affected by the rainfall, fell 12%, while bulk water sales, the majority of its business, increased 2%.

Now what: Considering that the retail sales were affected by a one-time event, and the company's performance was otherwise respectable, I wouldn't get too excited about today's share drop. The summer quarter is the slowest for Consolidated, and shares had doubled in the past year before today's drop as the company had crushed earnings estimates in its three previous reports. With little growth expected ahead, shares may be fairly valued now; but there's no reason to change your investing thesis based on today's news.

Think long term
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2725009, ~/Articles/ArticleHandler.aspx, 9/30/2016 4:42:33 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
CWCO $11.62 Up +0.17 +1.48%
Consolidated Water CAPS Rating: *****