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Shares of Consolidated Water (NASDAQ: CWCO) were gushing higher today after the water utility company posted strong third-quarter earnings with revenue nearly doubling in the quarter, topping estimates.

As of 12:09 p.m. ET, the stock was up 15.2%.

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Water, water everywhere

Utilities like Consolidated Water are normally sleepy businesses with predictable returns, but the company saw revenue in the quarter jump 99% to $49.9 million, well ahead of estimates at $37 million.

That growth was primarily due to a 237% jump to $29.4 million in services revenue as it recognized $20 million in revenue from its PERC water subsidiary due to progress on the construction of an advanced water treatment plant in Arizona.

Additionally, it benefited from increased tourism in Grand Cayman where the volume of water sold rose 16%. The company also got approval to begin with the first phase of a $204 million desalination plant in Hawaii.

As a result of the $20 million in revenue from PERC, earnings per share jumped from $0.05 to $0.55, beating estimates at $0.40 a share. The company also raised its dividend in the quarter by 11.8% to $0.095 a quarter.

CEO Rick McTaggart said: “Looking ahead, we continue to remain optimistic about our future growth prospects. We are encouraged by the continued recovery of tourism to Grand Cayman, and our progress on the several large construction projects underway.”

What’s next for Consolidated Water

The company didn’t provide guidance for the fourth quarter, but it looks well positioned for growth as it builds out desalination plants and similar resources in parts of the world with limited sources of fresh water.

If you’re looking for a utility stock with growth potential, this one looks like a good bet.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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