Water management manufacturer Watts Water (NYSE:WTS) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
Watts Water Technologies beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $558 million, down 2.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Watts Water Technologies a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Watts Water Technologies’s revenue to grow 2.6% year on year to $612.9 million, slowing from the 12.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.63 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 9 analysts). Watts Water Technologies has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Watts Water Technologies’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Xylem delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 4.2%, and Mueller Water Products reported revenues up 6.6%, topping estimates by 3.4%. Xylem traded up 8.7% following the results.
Read our full analysis of Xylem’s results here and Mueller Water Products’s results here.
Investors in the industrial machinery segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Watts Water Technologies is up 4.7% during the same time and is heading into earnings with an average analyst price target of $249.20 (compared to the current share price of $261.65).
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