Company Overview - Zurn Elkay Water Solutions Corporation (ZWS) shares increased by 7.7% to close at $32, driven by notable trading volume, contrasting with a 2.1% loss over the past four weeks [1][2] Business Performance - The rally in Zurn Elkay's stock is attributed to strong momentum in its water management business, with positive performance in commercial and institutional markets, and increasing demand for water management solutions [2] - The company is expected to report quarterly earnings of $0.32 per share, reflecting a year-over-year increase of 10.3%, with revenues projected at $406.35 million, up 2% from the previous year [3] Earnings Estimates - The consensus EPS estimate for Zurn Elkay has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Zurn Elkay currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to A.O. Smith (AOS), which has a Zacks Rank of 3 (Hold) and a recent EPS estimate change of -0.5% [4][5]

Investors interested in Manufacturing - Electronics stocks are likely familiar with Zurn Water (ZWS) and Schneider Electric SE (SBGSY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies ...

Core Viewpoint - Zurn Water (ZWS) has experienced a decline of 7.9% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Group 1: Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with selling pressure possibly exhausting, which could lead to a trend reversal [1] - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control during a downtrend [2] - This pattern can occur across various timeframes and should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for ZWS serve as a bullish indicator, correlating strongly with near-term stock price movements [3] - The consensus EPS estimate for ZWS has increased by 2.7% over the last 30 days, indicating analysts' optimism about the company's earnings potential [3] - ZWS holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended June 30, 2024 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: 001-35475 _________________________________________________ ZURN ELKAY WATER SOLUT ...

Net sales were $412.0 million and $403.2 million during the three months ended June 30, 2024 and June 30, 2023, respectively, an increase of 2% year over year. Core sales growth of 2%, including growth across multiple product categories, was offset by a 100 basis point impact from the planned exit of certain residential sink products. During the three months ended June 30, 2024, income from operations was $71.9 million compared to $54.8 million during the three months ended June 30, 2023. Income from operat ...

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Zurn Water currently has an Earnings ESP of +0.83%, which sugges ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $407.23 million, up 1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.07% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. E ...

Financial Data and Key Metrics Changes - Q1 2024 sales totaled $374 million, representing a 400 basis points increase year-over-year on a pro-forma core basis [11] - Adjusted EBITDA for Q1 increased by 24% year-over-year to $90 million, with an adjusted EBITDA margin expanding by 460 basis points to 24.1% [13] - Free cash flow generated in Q1 was $50 million, with $19 million used for share repurchases [9][14] Business Line Data and Key Metrics Changes - Mid-single-digit core sales growth was observed in non-residential end markets, while residential sales remained flattish year-over-year [11] - The drinking water segment is expected to grow at double digits, with a focus on increasing the number of filtered units installed [16] Market Data and Key Metrics Changes - The company noted steady strength in institutional markets, with some weakness in commercial and residential sectors [7] - The book-to-bill ratio was one in Q1, indicating that order growth was in line with sales growth [12] Company Strategy and Development Direction - The company is focused on the clean, safe drinking water category, aiming for double-digit growth in this segment [16] - The deployment of the Zurn Elkay Business System (ZEBS) has led to significant margin expansion and improved operational efficiency [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the margin profile established and raised the full-year margin expansion outlook from 150 basis points to 200 basis points [9][25] - The company remains cautious about the commercial market but sees continued strength in institutional markets and growth initiatives [39] Other Important Information - The company is committed to sustainability, with a focus on products that reduce water consumption and protect potable water supplies [20][21] - The company has a balanced capital allocation strategy, focusing on core business investments, M&A opportunities, and share buybacks [14][42] Q&A Session Summary Question: Insights on drinking water growth rates and filtration - Management indicated that filtered units growth is expected to be in the double-digit range, with filtration growing significantly faster [29][30] Question: Margin performance and guidance for Q3 and Q4 - Management stated that the guidance for Q2 is conservative, with confidence in sustaining margins through the year [32][34] Question: Impact of interest rates on business outlook - Management noted that while lower interest rates could help, they do not expect significant changes in growth due to the current interest rate environment [36][39] Question: M&A pipeline and cash flow outlook - Management confirmed ongoing cultivation of M&A opportunities while maintaining a strong cash flow position [40][42] Question: Variance in product category performance - Management reported no significant differences in growth rates among the product categories, with overall stability expected [44][45] Question: Regional growth and distribution strategy - Management highlighted successful rep network creation in Canada and Mexico, contributing to growth outside the U.S. [49][50] Question: Insider selling and buyback potential - Management clarified that recent insider selling was related to personal financial matters, with no indication of significant future sales [73][74]

First Quarter 2024 Financial Results April 24, 2024 Cautionary Statement Under The Private Securities Litigation Reform Act Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the federal securities laws that involve risks and uncertainties. Forwardlooking statements include statements we make concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 2024 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: 001-35475 _________________________________________________ ZURN ELKAY WATER SOLU ...