Why Consolidated Water Co. Ltd Shares Took a Spill

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 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.

The article Why Consolidated Water Co. Ltd Shares Took a Spill originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.