Water management manufacturer Watts Water (NYSE: WTS) will be reporting results this Wednesday after market close. Here’s what investors should know.
Watts Water Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $763.2 million, up 18.6% year on year. It was a stunning quarter for the company, with a solid 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 13.2% year on year, in line with the 12.5% 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 Q3 results, giving us a hint as to what we can expect. Tennant delivered year-on-year revenue growth of 6.3%, missing analysts’ expectations by 2.6%, and Xylem reported a revenue decline of 3%, falling short of estimates by 3.5%. Xylem traded down 18.5% following the results.
Read our full analysis of Tennant’s results here and Xylem’s results here.
Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Watts Water Technologies is down 1.4% during the same time and is heading into earnings with an average analyst price target of $403.71 (compared to the current share price of $357.62).
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