Watts Water (WTS) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - The market anticipates Watts Water (WTS) to report a year-over-year earnings increase driven by higher revenues, with a focus on how actual results compare to consensus estimates [1][2]. Earnings Expectations - Watts Water is expected to report quarterly earnings of $2.68 per share, reflecting an 8.9% increase year-over-year, with revenues projected at $606.7 million, up 1.6% from the previous year [3]. - The earnings report is scheduled for August 6, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 1.37% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Watts Water is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.86%, suggesting a bullish outlook on the company's earnings [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Watts Water exceeded the expected earnings of $2.12 per share by delivering $2.37, resulting in a surprise of +11.79% [13]. - The company has beaten consensus EPS estimates in all of the last four quarters [14]. Conclusion - Watts Water is positioned as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance beyond just earnings results [17].