Water management manufacturer Watts Water (NYSE:WTS) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
Watts Water Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $625.1 million, up 15.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid 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 for active Edge members.
This quarter, the market is expecting Watts Water Technologies’s revenue to grow 14.3% year on year, a reversal from the 2.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Watts Water Technologies has a history of exceeding Wall Street’s expectations.
Looking at Watts Water Technologies’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tennant delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 3%, and Xylem reported revenues up 2.7%, topping estimates by 0.7%. Xylem traded down 6.6% following the results.
Read our full analysis of Tennant’s results here and Xylem’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 7.6% on average over the last month. Watts Water Technologies’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $333.67 (compared to the current share price of $290).
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