Watts Water Technologies, Inc (WTS) reported second-quarter 2024 adjusted earnings per share (EPS) of $2.46, which increased 5% on a year-over-year basis and beat the Zacks Consensus Estimate by 5.1%. The company's quarterly net sales rose 12% year over year to $597.3 million. The top line surpassed the Zacks Consensus Estimate by 1.8%. Organic sales remained flat year over year. The company's performance benefited from higher revenue growth in the Asia-Pacific, the Middle East and Africa (APMEA) and the Am ...

Watts Water (WTS) reported $597.3 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 12.1%. EPS of $2.46 for the same period compares to $2.34 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $586.67 million, representing a surprise of +1.81%. The company delivered an EPS surprise of +5.13%, with the consensus EPS estimate being $2.34. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Sales Performance - Reported sales of $597 million increased by 12% compared to Q2 2023, with organic sales remaining flat[1][4] - Sales in the Americas reached $448 million, a 22% increase on a reported basis and 5% organically, driven by price realization and core product growth[5] - European sales decreased by 16% to $114 million, with a 15% decline in organic sales due to lower volumes and unfavorable foreign exchange impacts[6] - APMEA region sales increased by 16% to $35 million, with an 18% organic growth, benefiting from project timing[7] - Total sales for the second quarter of 2024 reached $597.3 million, a 12.1% increase from $532.8 million in the second quarter of 2023[16] - The Americas segment reported sales of $448.1 million for the second quarter of 2024, up 22.0% from $366.9 million in the same quarter of 2023[16] - The APMEA segment's sales grew to $35.1 million in the second quarter of 2024, up from $30.3 million in the same quarter of 2023, indicating a growth of 15.9%[16] - Reported net sales for the six months ended June 30, 2024, reached $1,168.2 million, a 16.3% increase compared to $1,004.5 million for the same period in 2023[24] Earnings and Margins - Reported EPS of $2.44, an increase of 8%; adjusted EPS of $2.46, up 5%[1][4] - Operating margin reported at 18.7%, down 10 basis points; adjusted operating margin at 18.8%, down 70 basis points[1][4] - Adjusted operating income for Q2 2024 was $112.1 million, compared to $103.9 million in Q2 2023, reflecting an increase of 2.1%[20] - The adjusted operating margin for Q2 2024 was 18.8%, slightly down from 19.5% in Q2 2023[20] - Net income for Q2 2024 was reported at $82.0 million, up from $75.9 million in Q2 2023, marking a 1.6% increase[20] - Net income for the six months ended June 30, 2024, was $154.5 million, up from $140.6 million for the same period in 2023, representing an increase of about 9.0%[15] Cash Flow and Investments - Operating cash flow for the first six months of 2024 was $131 million, up from $101 million in the same period last year, resulting in free cash flow of $120 million[8] - The company reported a net cash provided by operating activities of $130.9 million for the six months ended June 30, 2024, compared to $100.5 million for the same period in 2023, an increase of 30.2%[15] - Free cash flow for the six months ended June 30, 2024, was $119.7 million, up from $88.9 million in the same period last year[25] - The cash conversion rate of free cash flow to net income improved to 77.5% for the six months ended June 30, 2024, compared to 63.2% in the prior year[25] - The company invested $96.3 million in business acquisitions during the first half of 2024, compared to $11.7 million in the same period of 2023[15] Financial Position - Total assets increased to $2,383.3 million as of June 30, 2024, compared to $2,309.4 million at December 31, 2023, reflecting a growth of approximately 3.2%[14] - Total stockholders' equity increased to $1,618.2 million as of June 30, 2024, from $1,513.3 million at December 31, 2023, reflecting a growth of 6.9%[14] - Cash and cash equivalents decreased to $279.4 million at the end of the period from $350.1 million at the beginning of the year, a decline of 20.2%[15] - Net debt as of June 30, 2024, was $(20.7) million, a decrease from $(51.8) million at the end of 2023[26] - The net debt to capitalization ratio improved to (1.3)% as of June 30, 2024, compared to (3.5)% at the end of 2023[26] Future Outlook - Full-year 2024 outlook maintains reported sales growth of 7% to 12% and organic sales range of -4% to 1%[10] - The company forecasts reported net sales growth of 7% to 12% for the full year 2024, with an anticipated impact from acquisitions and foreign exchange of (11)%[27] - Organic sales growth is projected to be between (4)% to 1% for the full year 2024[27] - The operating margin is expected to be in the range of 16.6% to 17.2% for the full year 2024, with an adjusted operating margin forecasted at 17.1% to 17.7%[27] - Future outlook remains positive with continued focus on organic growth and strategic acquisitions to enhance market position[20]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] - The Zacks Style Scores offer a unique rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance [3][4] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - A large pool of stocks is available, with over 800 top-rated options, making the Style Scores essential for narrowing down choices [9] Stock Highlight: Watts Water Technologies, Inc. (WTS) - Watts Water Technologies, Inc. specializes in water safety and flow control products, generating 73.4% of its revenues from the Americas, 21.6% from Europe, and 5% from APMEA [12] - Currently rated 3 (Hold) by Zacks, WTS has a VGM Score of B and a Momentum Style Score of B, with shares increasing by 11.9% in the past four weeks [13] - The Zacks Consensus Estimate for WTS's earnings has risen by $0.06 to $8.70 per share, with an average earnings surprise of 11.7% [13][14]

The market expects Watts Water (WTS) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be r ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Watts Water (WTS) , which belongs to the Zacks Instruments - Control industry, could be a great candidate to consider. For Watts Water, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future ear ...

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Watts Water Technologies, Inc. (NYSE:WTS) Q1 2024 Earnings Conference Call May 9, 2024 9:00 AM ET Company Participants Diane McClintock - SVP, Investor Relations Bob Pagano - President & CEO Shashank Patel - CFO Conference Call Participants Adam Farley - Stifel Mike Halloran - Baird David Tarantino - KeyBanc Capital Markets Michael Anastasiou - TD Cowen Walt Liptak - Seaport Research Operator Ladies and gentlemen, welcome to the Watts Water Technologies Incorporated First Quarter 2024 Earnings Call hosted b ...

Table of Contents or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-11499 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 WATTS WATER TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 04-2916536 (State or ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Diane McClintock SVP FP&A & Investor Relations email:investorrelations@wattswater.com WATTS WATER TECHNOLOGIES REPORTS RECORD FIRST QUARTER 2024 RESULTS Note changes in performance are relative to first quarter 2023 North Andover, Mass., May 8, 2024 -- Watts Water Technologies, Inc., (NYSE: WTS) – through its subsidiaries, one of the world's leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results ...