NYSE$MWA

Mueller Water Products Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Mueller Water Products reported a decrease in net sales but an increase in operating income and adjusted EBITDA for Q4 2023.

Mueller Water Products reported a decrease in net sales for the fourth quarter of 2023, but operating income and adjusted EBITDA increased. The company faced volume headwinds but benefited from higher pricing and lower SG&A expenses. The company is recovering from a cybersecurity incident announced on October 28, 2023.

  • Net sales decreased by 9.1 percent to $301.4 million compared to the prior year quarter.
  • Operating income increased to $24.9 million, compared to $11.6 million in the prior year quarter.
  • Adjusted EBITDA increased by 43.5 percent to $55.4 million, resulting in an adjusted EBITDA margin of 18.4 percent.
  • Net income per diluted share increased to $0.11, compared to $0.05 in the prior year quarter.

Headline financials

Total Revenue

$301M

Previous: $331M-9.1%
EPS (adj)

$0.19

Previous: $0.10+90.0%
Adjusted EBITDA

$55.4M

Previous: $38.6M+43.5%
Adjusted EBITDA Margin

18.4%

Previous: 11.6%+58.6%
Capital Expenditures

-$15.2M

No prior period
Free Cash Flow

$61.4M

Previous: -$2.4M+2658.3%
Net Income

$17.2M

Previous: $7.1M+142.3%
Operating Income

$24.9M

Previous: $11.6M+114.7%
Gross Profit

$88.4M

Previous: $85.6M+3.3%
Cash & Equivalents

$160M

Previous: $147M+9.4%
Total Assets

$1.51B

Previous: $1.5B+0.5%
Stock-Based Comp

$2.6M

Previous: $2.1M+23.8%

Revenue & EPS history

Mueller · Revenue · Quarterly

$301M

Q4 2023-9.1%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
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 anticipates that channel and customer inventory levels will be substantially normalized by the end of the first quarter of fiscal 2024 and expects to face volume headwinds in fiscal 2024 relative to the prior year and anticipates that consolidated net sales will decrease between 3 and 8 percent as compared with fiscal 2023.

Tailwinds

  • Channel and customer inventory levels are expected to be substantially normalized by the end of the first quarter of fiscal 2024.
  • Iron gate valve and hydrant backlogs were normalized at the end of fiscal 2023.
  • The Company expects margins to improve in the second half of the year primarily due to its focus on operational and supply chain productivity improvements.
  • Total SG&A expenses are expected to be between $240 million and $245 million.
  • Capital expenditures are expected to be between $45 million and $50 million.

Headwinds

  • The Company expects to face volume headwinds in fiscal 2024 relative to the prior year.
  • Consolidated net sales are anticipated to decrease between 3 and 8 percent as compared with fiscal 2023.
  • The cybersecurity incident announced on October 28, 2023, is expected to negatively impact the Company's results.
  • The full costs of the cybersecurity incident have not yet been determined.
  • The Company will not provide profitability and margin guidance for the fiscal year at this time due to the need for further evaluation of the impacts of the incident.

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 Q4 2023

Historical avgQ4 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro