Watts Water Technologies
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Watts Water Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Watts Water Technologies chalked up revenue of $361.2 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $363.8 million on the same basis. GAAP reported sales were 2.6% lower than the prior-year quarter's $370.8 million.
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 $0.63. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.53 for Q3 were 16% lower than the prior-year quarter's $0.63 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 36.0%, 110 basis points worse than the prior-year quarter. Operating margin was 10.2%, 190 basis points worse than the prior-year quarter. Net margin was 5.2%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $357.7 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is $2.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 349 members out of 366 rating the stock outperform, and 17 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 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 $39.33.
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