Equity Profile

SBS

Companhia de Saneamento BÃ¡sico do Estado de SÃ£o Paulo - SABESP

UtilitiesWater Utilities$18.8B

Aug6Thu

Pre-Earnings Brief

UpcomingQ2-2018After Close9:00 AM EDT

Company Snapshot

Companhia de Saneamento Básico do Estado de São Paulo, known as SABESP, is a major water utility company in Brazil. It plays a crucial role in providing water and sewage services to millions of residents in São Paulo, making it a key player in the utilities sector.

Key Metrics to Watch

EPS

Earnings per share is a critical indicator of the company's profitability and financial health.

$0.42

Revenue

Total revenue gives insight into the company's sales performance and overall growth.

$6.4B

Wall Street expectations, options signals, track record, and call prep available with Pro.

SBS Q2-2018 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

25%

Avg EPS Surprise

+30.05%

Avg Stock Reaction

-2.74%

Last Quarter Recap

In the last quarter, SABESP reported an EPS of $0.85, exceeding expectations. However, the stock fell by 5.51% the following day, indicating market concerns despite the earnings beat.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect SABESP to report an EPS of $0.42 and revenue of $6.4 billion for Q2-2018. The market is closely watching how the company manages its operational costs and water supply amid ongoing challenges.

Bull Case

If SABESP can deliver strong revenue growth and maintain or improve its profit margins, it could signal robust demand for its services, leading to a positive market reaction.

Bear Case

Conversely, if the company reports disappointing revenue or increases in operational costs, it may raise concerns about its ability to sustain profitability, potentially leading to a negative stock reaction.

Key Metrics to Watch

EPS

$0.42

Earnings per share is a critical indicator of the company's profitability and financial health.

Revenue

$6.4B

Total revenue gives insight into the company's sales performance and overall growth.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the outlook for revenue growth in the upcoming quarter?

Revenue growth is critical for assessing the company's ability to meet operational costs and invest in infrastructure.

How is SABESP managing its operational costs amid rising inflation?

Cost management will be key to maintaining profitability, especially in a challenging economic environment.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating SABESP's ability to manage costs effectively, which could lead to better-than-expected margins.

Supporting Evidence

SABESP has historically beaten EPS estimates, suggesting potential for positive surprises.

The options market indicates a high level of uncertainty, which could mean the consensus is overly cautious.

Key Risk

If operational costs come in lower than expected, it could significantly impact the consensus view on profitability.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on revenue growth and cost management, which are critical for sustaining profitability.

Bull Confirmed If

Revenue growth above $6.7 billion would confirm the bull case.

Bear Confirmed If

Revenue below $6.1 billion would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±51.63%

Historical Avg

±4.1%

Pricing rich

The options market is pricing in a significant potential move, indicating high uncertainty or volatility around the earnings announcement.

Options are pricing ±51.6% while SBS has averaged ±4.1% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.9%

30d HV

32.8%

Calls (6K)P/C Ratio: 0.05Puts (200)

Edge

Institutional Ownership

Smart-money positioning from the most recent 13F filings.

Mixed flows

Institutional

10.88%

of float

Insider

15.00%

of float

Holders

335

institutions

Top Holders· as of Dec 2025

Impax Asset Management Group plc
7,463,013 sh · $259.0M
1.06%
-11.8%

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If SABESP beats expectations, history suggests the stock could rise around 4.14% on the first day, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may see a muted reaction, reflecting cautious sentiment from investors.

Miss

A miss could lead to a decline, with historical data suggesting a drop of around 1.12% on the first day following a disappointing report.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on infrastructure investments and their expected impact on revenue.
2Details on cost management strategies in response to inflation.
3Insights into customer demand trends for water services.
4Management's outlook on regulatory changes affecting the utility sector.
5Any commentary on long-term growth strategies and capital expenditures.

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Company Snapshot

Key Metrics to Watch

EPS

Earnings per share is a critical indicator of the company's profitability and financial health.

$0.42

Revenue

Total revenue gives insight into the company's sales performance and overall growth.

$6.4B

Wall Street expectations, options signals, track record, and call prep available with Pro.

SBS Q2-2018 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

25%

Avg EPS Surprise

+30.05%

Avg Stock Reaction

-2.74%

Last Quarter Recap

In the last quarter, SABESP reported an EPS of $0.85, exceeding expectations. However, the stock fell by 5.51% the following day, indicating market concerns despite the earnings beat.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If SABESP can deliver strong revenue growth and maintain or improve its profit margins, it could signal robust demand for its services, leading to a positive market reaction.

Bear Case

Key Metrics to Watch

EPS

$0.42

Earnings per share is a critical indicator of the company's profitability and financial health.

Revenue

$6.4B

Total revenue gives insight into the company's sales performance and overall growth.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the outlook for revenue growth in the upcoming quarter?

Revenue growth is critical for assessing the company's ability to meet operational costs and invest in infrastructure.

How is SABESP managing its operational costs amid rising inflation?

Cost management will be key to maintaining profitability, especially in a challenging economic environment.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating SABESP's ability to manage costs effectively, which could lead to better-than-expected margins.

Supporting Evidence

SABESP has historically beaten EPS estimates, suggesting potential for positive surprises.

The options market indicates a high level of uncertainty, which could mean the consensus is overly cautious.

Key Risk

If operational costs come in lower than expected, it could significantly impact the consensus view on profitability.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on revenue growth and cost management, which are critical for sustaining profitability.

Bull Confirmed If

Revenue growth above $6.7 billion would confirm the bull case.

Bear Confirmed If

Revenue below $6.1 billion would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±51.63%

Historical Avg

±4.1%

Pricing rich

The options market is pricing in a significant potential move, indicating high uncertainty or volatility around the earnings announcement.

Options are pricing ±51.6% while SBS has averaged ±4.1% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.9%

30d HV

32.8%

Calls (6K)P/C Ratio: 0.05Puts (200)

Edge

Institutional Ownership

Smart-money positioning from the most recent 13F filings.

Mixed flows

Institutional

10.88%

of float

Insider

15.00%

of float

Holders

335

institutions

Top Holders· as of Dec 2025

Impax Asset Management Group plc
7,463,013 sh · $259.0M
1.06%
-11.8%

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If SABESP beats expectations, history suggests the stock could rise around 4.14% on the first day, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may see a muted reaction, reflecting cautious sentiment from investors.

Miss

A miss could lead to a decline, with historical data suggesting a drop of around 1.12% on the first day following a disappointing report.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on infrastructure investments and their expected impact on revenue.
2Details on cost management strategies in response to inflation.
3Insights into customer demand trends for water services.
4Management's outlook on regulatory changes affecting the utility sector.
5Any commentary on long-term growth strategies and capital expenditures.