Water management manufacturer Watts Water (NYSE:WTS) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Watts Water Technologies beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $540.4 million, down 1.3% year on year. It was a strong quarter for the company, with 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 decline 4% year on year to $547.8 million, a reversal from the 21% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Watts Water Technologies has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Watts Water Technologies’s peers in the water infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mueller Water Products delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 2.9%, and Xylem reported revenues up 1.8%, topping estimates by 1.5%. Xylem traded up 4.1% following the results.
Read our full analysis of Mueller Water Products’s results here and Xylem’s results here.
There has been positive sentiment among investors in the water infrastructure segment, with share prices up 12.3% on average over the last month. Watts Water Technologies is up 16.8% during the same time and is heading into earnings with an average analyst price target of $218.67 (compared to the current share price of $213.67).
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