NYSE$WTS

Watts Water Technologies Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Watts' Q3 2024 performance saw sales increase by 8%, but organic sales decreased by 4%.

Watts Water Technologies reported an 8% increase in sales to $544 million, although organic sales declined by 4%. The company is raising the midpoint of its full-year 2024 operating margin outlook. EPS increased to $2.06, up 5% from the prior year.

  • Reported sales increased 8% to $544 million; organic sales were down 4%.
  • Operating margin was 17.1%, a decrease of 20 bps; adjusted operating margin was also 17.1%, down 90 bps.
  • Reported EPS rose 5% to $2.06; adjusted EPS was $2.03, compared to $2.04 in the previous year.
  • The midpoint of the full-year 2024 operating margin outlook is being raised.

Headline financials

Total Revenue

$544M

Previous: $504M+7.8%
EPS

$2.06

Previous: $2.04+1.0%
Capital Expenditures

-$23.3M

Previous: -$19M-22.6%
Free Cash Flow

$45.8M

Previous: $46.8M-2.1%
Net Income

$69.1M

Previous: $65.8M+5.0%
Operating Income

$93.2M

Previous: $87.1M+7.0%
Gross Profit

$257M

Previous: $234M+9.7%
Cash & Equivalents

$304M

Previous: $363M-16.2%
Total Assets

$2.4B

Previous: $2.02B+18.9%
Stock-Based Comp

$5.5M

Previous: $5M+10.0%

Revenue & EPS history

Watts · Revenue · Quarterly

$544M

Q3 2024+7.8%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Watts · $504M total across 3 segments · Q3 2023

  • Americas
    $351M+0.3%
  • Europe
    $120M+6.3%
  • APMEA
    $33.1M+32.9%

Forward guidance

The company is raising the midpoint of its full year operating margin outlook by 20 basis points and narrowing its full year sales guidance compared to our previous outlook. We expect reported sales to increase 9% to 10% and organic sales to decline between 1% and 2%. Full year operating margin is expected to be between 17.2% and 17.4% and adjusted operating margin to be between 17.5% and 17.7%, or down 10 basis points to 30 basis points.

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 Q3 2024

Historical avgQ3 2024

+0.7%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+2.6%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+12.7%

Q2 2015

Best reaction

-7.8%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+2.6%+7.6%
Q4 2025+6.8%+4.7%-5.4%
Q3 2025-6.7%-2.4%-3.4%
Q1 2025+10.2%+15.0%+15.6%
Q4 2024+7.6%+2.5%-1.1%
Q3 2024-3.6%-1.1%+9.1%
Q2 2024-5.7%-9.2%-3.7%
Q1 2024+1.0%+2.3%-10.5%
Q4 2023-7.8%-8.2%-5.5%
Q3 2023+7.3%+7.4%+13.6%
Q2 2023+0.8%+3.0%+1.1%
Q1 2023+3.5%+4.7%+3.5%
Q4 2022+3.2%+3.3%-3.1%
Q3 2022-3.8%-1.0%+9.2%
Q2 2022+7.2%+5.8%-1.6%
Q1 2022+7.3%+3.4%+6.2%
Q4 2021-5.0%-8.7%-8.0%
Q3 2021+2.6%+6.2%-2.1%
Q2 2021+2.7%+4.6%+8.8%
Q1 2021+4.2%+10.5%+13.1%
Q4 2020-2.9%-5.3%-4.3%
Q3 2020-1.2%-2.8%+1.5%
Q2 2020+3.5%+8.9%+16.4%
Q1 2020-4.2%-4.7%+11.7%
Q4 2019+7.2%+6.8%-9.0%
Q3 2019-2.2%-0.3%+1.7%
Q2 2019-1.5%-2.1%-2.1%
Q1 2019+2.1%+0.5%-4.0%
Q4 2018+8.6%+5.9%+3.9%
Q3 2018+4.7%+7.8%+3.5%
Q2 2018+0.9%+0.2%-3.6%
Q1 2018+0.4%+3.3%+4.9%
Q4 2017+3.8%+6.0%+10.5%
Q3 2017+4.5%+2.4%+9.4%
Q2 2017+4.7%+3.1%-2.5%
Q1 2017+7.9%+3.8%+3.9%
Q4 2016-3.5%-4.6%-5.5%
Q3 2016+2.6%+5.7%+14.9%
Q2 2016+3.3%+3.5%+8.8%
Q1 2016-3.6%
Q4 2015+3.5%
Q3 2015-6.7%
Q2 2015+12.7%
Q1 2015-1.9%
Q4 2014-7.8%
Q3 2014+2.1%
Q2 2014-1.0%
Q1 2014-6.0%
Q4 2013+2.8%
Q3 2013+0.3%
Q2 2013+0.5%
Q1 2013-4.7%
Q4 2012-2.8%
Q3 2012+6.4%
Q2 2012+3.5%
Q1 2012-1.7%
Q4 2011-0.6%
Q2 2011-0.6%
Q3 2011+0.2%
Q1 2010-1.9%
Q1 2011-1.9%
Q2 2010-4.1%
Q4 2008-4.1%
Q4 2010-4.1%
Q3 2009-0.9%
Q3 2010-0.9%
Q2 2009-1.2%
Q4 2009-1.2%

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