As you might know, Consolidated Water Co. Ltd. (NASDAQ:CWCO) last week released its latest quarterly, and things did not turn out so great for shareholders. Consolidated Water missed earnings this time around, with US$30m revenue coming in 6.0% below what the analyst had modelled. Statutory earnings per share (EPS) of US$0.23 also fell short of expectations by 12%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Following last week's earnings report, Consolidated Water's solitary analyst are forecasting 2026 revenues to be US$127.7m, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 14% to US$0.94 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$135.1m and earnings per share (EPS) of US$1.05 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

What's most unexpected is that the consensus price target rose 8.9% to US$43.00, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Consolidated Water's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.7% annualised decline to the end of 2026. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Consolidated Water is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Consolidated Water. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We also provide an overview of the Consolidated Water Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.