Pure Cycle (PCYO) Reports Narrower-than-Expected Q1 Loss

Denver, CO-based Pure Cycle Corporation PCYO posted a loss of a penny in the first quarter of fiscal 2017 (ended Nov 30, 2016), narrower than the Zacks Consensus Estimate of a loss of 2 cents. The company had reported break-even results in the first quarter of fiscal 2016.

Total Revenue

In the reported quarter, Pure Cycle recorded total revenue of $0.19 million, up 46.2% from the year-ago quarter figure of $0.13 million. The upside was driven primarily by fracking water sales.

Highlight of the Release

Total operating expenses were up 8.8% year over year to $0.52 million due to a 5% increase in general and administrative expenses, and a 40% increase in Other expenses.

As of Nov 30, 2016, Pure Cycle’s cash and cash equivalents declined to $27.34 million from $27.88 million as of Aug 31, 2016.

Other long-term liabilities as of Nov 31, 2016 were $1.38 million, down from $1.39 million as of Aug 31, 2016.

Price Movement

Over the last one year, Pure Cycle has underperformed the Zacks categorized Utility – Water Supply industry. The company’s shares gained 13.4%, compared with the industry’s return of 27.8%.

Rising interest levels might make it difficult for the company to get the necessary or desired amount to fund capital improvements on favorable terms.

Upcoming Peer Releases

American Water Works AWK is expected to release fourth-quarter 2016 earnings on Feb 23. The Zacks Consensus Estimate for the quarter is pegged at 63 cents.

American States Water Company AWR is expected to release fourth-quarter 2016 earnings on Feb 22. The Zacks Consensus Estimate for the quarter is pegged at 29 cents.

Connecticut Water Service, Inc. CTWS is expected to release fourth-quarter 2016 earnings on Mar 13. The Zacks Consensus Estimate for the quarter is pegged at 23 cents.

Zacks Rank

Pure Cycle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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