Watts Water Technologies
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Watts Water Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share increased. GAAP earnings per share dropped.
Gross margins grew, operating margins increased, net margins contracted.
Watts Water Technologies logged revenue of $359.2 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $357.6 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 $0.61. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. Non-GAAP EPS of $0.61 for Q4 were 8.9% higher than the prior-year quarter's $0.56 per share. GAAP EPS of $0.44 for Q4 were 4.3% lower than the prior-year quarter's $0.46 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 36.1%, 190 basis points better than the prior-year quarter. Operating margin was 9.4%, 280 basis points better than the prior-year quarter. Net margin was 4.3%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $368.4 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $2.60.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 341 members out of 358 rating the stock outperform, and 17 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 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 $41.83.
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