Water management manufacturer Watts Water (NYSE:WTS) will be announcing earnings results tomorrow afternoon. Here's what you need to know.
Watts Water Technologies beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $570.9 million, up 21% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings 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 10.7% year on year to $589.6 million, improving from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.33 per share.
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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.7% on average.
Looking at Watts Water Technologies's peers in the water infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mueller Water Products delivered year-on-year revenue growth of 9.2%, beating analysts' expectations by 8.2%, and Energy Recovery reported revenues up 31.3%, topping estimates by 18.6%. Energy Recovery traded up 20.6% following the results.
Read our full analysis of Mueller Water Products's results here and Energy Recovery's results here.
Investors in the water infrastructure segment have had steady hands going into earnings, with share prices flat over the last month. Watts Water Technologies is up 8.7% during the same time and is heading into earnings with an average analyst price target of $205.5 (compared to the current share price of $193.98).
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