NEW YORK (TheStreet) -- Shares of Connecticut Water Service Inc. (CTWS) are higher by 1.55% to $32.15 in mid-afternoon trading on Monday, after the company reported an increase in net income to $7.5 million, or 69 cents per share for the 2014 second quarter, compared to $4.3 million, or 40 cents per share for the year ago period.
Connecticut Water attributes its increase in earnings to the application of the water revenue adjustment, which allows the company “to reconcile actual water demands with the demands projected in the last general rate case through a rate adjustment,” the company said.
The company, which works to deliver high-quality drinking water to its customers, said total revenue grew to $27.2 million for the most recent quarter, from $24.3 million for the 2013 second quarter.
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Separately, TheStreet Ratings team rates CONNECTICUT WATER SVC INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONNECTICUT WATER SVC INC (CTWS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
You can view the full analysis from the report here: CTWS Ratings ReportCTWS data by YCharts
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