Water management manufacturer Watts Water (NYSE: WTS) will be reporting results this Wednesday after market hours. Here’s what investors should know.
Watts Water Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $677.3 million, up 21.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS 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 13% year on year, improving from the 7.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Xylem delivered year-on-year revenue growth of 1.5%, meeting analysts’ expectations, and Columbus McKinnon reported revenues up 125%, topping estimates by 5.9%. Xylem traded up 1.6% following the results while Columbus McKinnon was also up 31.1%.
Read our full analysis of Xylem’s results here and Columbus McKinnon’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Watts Water Technologies is down 5.1% during the same time and is heading into earnings with an average analyst price target of $358.33 (compared to the current share price of $350.59).
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