NYSE$MWA

Mueller Water Products Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Mueller Water Products' first quarter results for 2020 were reported with increased net sales and net income.

Mueller Water Products reported a strong start to fiscal year 2020, with a 10.3% increase in net sales to $212.6 million and a net income of $10.3 million. The company benefited from higher pricing and increased shipment volumes. They also settled the Walter Energy tax liability with a $22.2 million payment.

  • Net sales increased by 10.3 percent to $212.6 million compared to the prior year quarter.
  • Operating income was $20.3 million, compared to $15.9 million in the prior year quarter.
  • Net income reached $10.3 million, a significant improvement from the net loss of $21.0 million in the prior year quarter.
  • Adjusted EBITDA increased by 19.5 percent to $37.4 million compared to $31.3 million in the prior year quarter.

Headline financials

Total Revenue

$213M

Previous: $193M+10.3%
EPS (adj)

$0.08

Previous: $0.07+14.3%
Gross Margin

34.0%

No prior period
Free Cash Flow

$10.3M

Previous: -$21M+149.0%
Net Income

$10.3M

Previous: -$21M+149.0%
Operating Income

$20.3M

Previous: $15.9M+27.7%
Gross Profit

$72.6M

Previous: $60.1M+20.8%
Cash & Equivalents

$137M

Previous: $199M-31.2%
Total Assets

$1.31B

Previous: $1.26B+4.0%
Stock-Based Comp

$1.3M

Previous: $1.7M-23.5%

Revenue & EPS history

Mueller · Revenue · Quarterly

$213M

Q1 2020+10.3%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Mueller · $301M total across 2 segments · Q4 2023

  • Water Flow Solutions
    $162M-10.0%
  • Water Management Solutions
    $140M-8.0%

Forward guidance

The company expects continued favorable demand and is increasing expectations for growth in net sales and adjusted EBITDA for fiscal year 2020, aiming for the upper end of previously provided annual guidance ranges.

Tailwinds

  • Municipal spending growing in the low-single digit range.
  • Residential construction growing in the low-single digit range.
  • Natural gas distribution growing in the low to mid-single digit range.
  • Consolidated net sales growth at the high end of the 3 to 5 percent range.
  • Growth in adjusted EBITDA at the high end of the 4 to 8 percent range.

Headwinds

  • Continued uncertainty from global and domestic matters.
  • Potential impact of coronavirus on operations and results.
  • Risk of failure to achieve expected cost savings.
  • Sales growth, profitability improvements and manufacturing efficiencies from large capital projects.
  • Changing regulatory, trade and tariff conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.7%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.8%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+16.7%

Q1 2025

Best reaction

-12.8%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.8%-6.4%-8.1%
Q1 2026+1.5%+7.0%+1.5%
Q4 2025-4.4%-5.9%-1.8%
Q2 2025-6.3%-9.4%-9.9%
Q1 2025+16.7%+16.6%+8.5%
Q4 2024+6.2%+14.5%+11.5%
Q3 2024+2.2%+1.1%+2.8%
Q2 2024+11.0%+18.7%+9.5%
Q1 2024+10.8%+10.4%+14.5%
Q4 2023+7.4%+3.5%+0.9%
Q3 2023-10.8%-13.3%-11.0%
Q2 2023-6.4%-9.2%+3.5%
Q1 2023+7.5%+6.8%+8.2%
Q4 2022-1.7%-2.6%-0.3%
Q3 2022-9.3%-10.4%-15.6%
Q2 2022-3.0%+0.1%-0.2%
Q1 2022+0.4%+4.2%-2.3%
Q4 2021-8.5%-13.0%-15.3%
Q3 2021+2.7%+1.1%+7.4%
Q2 2021+1.9%+3.6%+0.5%
Q1 2021+2.4%+6.1%+8.6%
Q4 2020+7.7%+7.3%+13.4%
Q3 2020+6.9%+8.8%+5.0%
Q2 2020-4.6%-4.5%+3.7%
Q1 2020+3.5%+1.2%-4.6%
Q4 2019-5.1%-7.4%-2.1%
Q3 2019+3.8%+0.4%+2.0%
Q2 2019-12.8%-15.2%-12.0%
Q1 2019+6.5%+3.6%+3.9%
Q4 2018+7.3%+6.2%-4.4%
Q3 2018-5.4%-5.7%-7.5%
Q2 2018+15.4%+20.7%+23.7%
Q1 2018-2.4%-4.6%-5.5%
Q4 2017+3.7%+2.3%+3.4%
Q3 2017+6.7%+4.6%+5.0%
Q2 2017-11.9%-12.2%-12.6%
Q1 2017+0.3%-6.6%-9.2%
Q4 2016-11.8%-9.0%+9.9%
Q3 2016+4.9%+7.9%+7.7%
Q2 2016+6.1%
Q1 2016+5.9%
Q4 2015-2.1%
Q3 2015+5.8%
Q2 2015-5.5%
Q1 2015-12.8%
Q4 2014+9.7%
Q3 2014+14.8%
Q2 2014-3.0%
Q1 2014+10.0%
Q4 2013+4.4%
Q3 2013+6.2%
Q2 2013+11.4%
Q1 2013-1.3%
Q4 2012+9.7%
Q3 2012+3.1%
Q2 2012+3.1%
Q1 2012-1.4%
Q4 2009+10.3%
Q3 2010+2.9%
Q3 2011+2.9%
Q2 2011+1.7%
Q2 2010+1.7%
Q1 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%

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