Watts Water Technologies
The 10-second takeaway
For the quarter ended March 31 (Q1), Watts Water Technologies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Margins expanded across the board.
Watts Water Technologies recorded revenue of $362.1 million. The nine analysts polled by S&P Capital IQ looked for revenue of $370.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. Non-GAAP EPS of $0.49 for Q1 were 14% higher than the prior-year quarter's $0.43 per share. GAAP EPS of $0.45 for Q1 were 7.1% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.8%, 20 basis points better than the prior-year quarter. Operating margin was 8.4%, 70 basis points better than the prior-year quarter. Net margin was 4.4%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $384.2 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 342 members out of 359 rating the stock outperform, and 17 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Watts Water Technologies a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Watts Water Technologies is hold, with an average price target of $47.00.
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