Why Mueller Water Products' Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Mueller Water Products (NYSE: MWA  ) jumped as much as 17% today after the company released earnings.

So what: Fiscal-second-quarter revenue jumped 12.6% to $283.1 million and net income was $6.2 million, or $0.05 per share. Analysts only expected revenue to be $270.8 million and earnings of $0.02 per share so this was well ahead of estimates.  

Now what: The Mueller Co. business drove the results with a 21.7% jump in revenue during the quarter and new products and services saw revenue more than double. The company's results were much better than expected but I'd still like to see more profit before jumping in. The stock is trading at 24 times forward earnings estimates and that's a steep price for this business.

Interested in more info on Mueller Water Products? Add it to your watchlist by clicking here.


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  • Report this Comment On May 04, 2013, at 8:47 PM, Jamashus1 wrote:

    One Water Stock that won't leave you in Hot Water

    Out of all the water stocks this week, one of the stocks that has emerged as one of my favorites is, MWA, Mueller Water Products, a nuts and bolts type company of the water industry. I once rated this stock as a great value stock for under five bucks, looks like I'll have to revise that to a great value stock for under ten bucks.

    Earlier this week it was up on some good reports, and hasn't looked back, racking up 19 percent gains in the week.

    It trades around the mid $6.00 range, but made fresh hi's,(post 2009) trading up to $7.07. When the stock pulls back would look to buy on dips, lo- $5.00's, had to revise that from mid to hi $4.00's not sure if we'll see that px range again). Then ride it up to $8.00 level. Evaluate. Maybe time for take profit in the lo $8.00 to $8.25 level..

    This stock hits all the right notes for me, it’s in a hot sector, leader within its sector, gives a dividen, and up was up north of 80 percent for the year.

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