SBS Earnings Prediction
The chart below shows how SBS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SBS sees a +5.89% change in stock price 10 days leading up to the earnings, and a -3.44% change 10 days following the report. On the earnings day itself, the stock moves by -1.76%. This data can give you a slight idea of what to expect for the next quarter's release.
SBS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.70B
104.58%
108.93%
Gross Margin
73.27%
90.21%
72.60%
Operating Margin
65.68%
149.07%
100.73%
Net Margin
40.75%
210.83%
127.40%
EPS
1.61
544.00%
373.53%
No Data Available
SBS Earnings Analysis
COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S Corporation (SBS.N) Earnings Conference Call
Positive
Revenue Increase Analysis: 1. Significant Revenue Growth: SABESP reported a 7% increase in net revenue, driven by a 2% growth in volume and a 6.4% tariff readjustment, resulting in a net positive effect of close to 5%.
EBITDA Improvement: 2. Strong EBITDA Performance: The company achieved a 17% increase in EBITDA, reflecting improved operational efficiency and a rise in sewage treatment close to 80%.
Operational Cash Generation: 3. Robust Operational Cash Generation: SABESP generated operational cash of BRL 1.6 billion, which was almost entirely reinvested in the asset base, supporting future growth initiatives.
Sanitation Investment Initiative: 4. Ambitious Investment Program: The company has planned over BRL 60 billion in investments aimed at accelerating the universalization of sanitation services over the next five years.
Cost Optimization Success: 5. Effective Cost Management: SABESP reported a 3% reduction in average tariff through optimization of the mix between free and regulated contracting environments, enhancing overall financial performance.
Negative
Deferred Revenue Impact: 1. Significant Deferred Revenue Impact: The bifurcation of financial assets led to a deferred revenue impact of approximately BRL 8.8 billion on gross revenue, affecting the company's financial outlook.
Tariff Adjustment Impact: 2. Negative Effect from Tariff Adjustments: The inclusion of the Cad Unico in the vulnerable tariff category generated a negative effect of almost BRL 30 million, reflecting challenges in revenue generation.
Cost Surge with Revenue Rise: 3. Increased Costs Amid Revenue Growth: Despite a 7% increase in net revenue, the company faced a net cost increase of around 9%, primarily due to a 12% rise in consumption costs during Q3 '24 compared to Q3 '23.
Contract Termination Impact: 4. Termination of Contracts Due to Regulatory Compliance: Approximately 500 contracts were terminated to comply with the new concession contract, which could impact revenue streams significantly.
Future Investment Uncertainty: 5. Uncertainty in Future Investment Guidance: The company decided to discontinue the investment forecast for '24 to '28, indicating a lack of clarity and potential instability in future capital expenditures.
SBS FAQs
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SBS Earning Call Sentiment
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SBS.N
1.33%Positive
The earnings call reveals strong financial performance, with a 17% increase in EBITDA and positive net profit impacts. The ambitious investment program and rigorous cost control measures indicate a proactive strategy. The Q&A section shows management's confidence in bridging gaps and exploring new opportunities, despite some uncertainties. The company's financial health and strategic investments suggest a positive outlook, likely leading to a stock price increase. However, the lack of clear guidance on certain aspects may limit the upside potential, placing the overall sentiment in the positive range.
