Companhia de Saneamento Básico do Estado de São Paulo - SABESP Third Quarter 2024 Earnings: EPS Beats Expectations, Revenues Lag

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BVMF:SBSP3) Third Quarter 2024 Results

Key Financial Results

• Revenue: R$15.0b (up 132% from 3Q 2023).
• Net income: R$6.11b (up by R$5.27b from 3Q 2023).
• Profit margin: 41% (up from 13% in 3Q 2023). The increase in margin was driven by higher revenue.
• EPS: R$8.94 (up from R$1.24 in 3Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Companhia de Saneamento Básico do Estado de São Paulo - SABESP EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 13%. Earnings per share (EPS) exceeded analyst estimates significantly.

Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 1.8% growth forecast for the Water Utilities industry in South America.

Performance of the market in Brazil.

The company's shares are up 3.3% from a week ago.

Risk Analysis

We should say that we've discovered 3 warning signs for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (2 are a bit concerning!) that you should be aware of before investing here.

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