Watts Water Technologies
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Watts Water Technologies met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margin dropped, operating margin dropped, and net margin grew.
Watts Water Technologies reported revenue of $360.2 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $362.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $316.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share on the same basis. GAAP EPS of $0.47 for Q4 were 52% higher than the prior-year quarter's $0.31 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 34.2%, 150 basis points worse than the prior-year quarter. Operating margin was 6.6%, 510 basis points worse than the prior-year quarter. Net margin was 4.7%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $370.0 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 355 members rating the stock outperform and 17 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Watts Water Technologies a green thumbs-up, and two 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 $41.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.