NYSE$WTS

Watts Water Technologies Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Watts reported solid fourth quarter results, driven by organic growth and improved operating income.

Watts Water Technologies reported a solid finish to 2019, with fourth-quarter sales increasing by 3% to $400 million and organic growth of 4%. GAAP EPS was $0.93, while adjusted EPS reached $1.00, a 14% increase. The company leveraged sales growth and productivity to achieve higher operating income and record operating margin and earnings per share on an adjusted basis.

  • Sales increased 3% to $400 million; organic growth of 4%, foreign exchange –1%.
  • GAAP and adjusted operating margin of 11.8% and 12.5%, respectively.
  • GAAP EPS of $0.93, -1% vs. last year; adjusted EPS of $1.00, + 14%.
  • Organic sales growth and adjusted operating margin expansion met original 2019 expectations.

Headline financials

Total Revenue

$400M

Previous: $388M+3.3%
EPS (adj)

$1.00

Previous: $0.88+13.6%
Total Organic Sales Growth

3.8%

No prior period
Americas Organic Sales Growth

3.6%

No prior period
Europe Organic Sales Growth

1.7%

No prior period
APMEA Organic Sales Growth

20.3%

No prior period
Capital Expenditures

$10.1M

Previous: $11.8M-14.4%
Free Cash Flow

$165M

Previous: $91M+81.2%
Net Income

$31.8M

Previous: $29.1M+9.3%
Operating Income

$47.3M

Previous: $45.4M+4.2%
Gross Profit

$170M

Previous: $166M+2.5%
Cash & Equivalents

$220M

Previous: $204M+7.6%
Total Assets

$1.72B

Previous: $1.65B+4.2%
Stock-Based Comp

$4.5M

Previous: $3.8M+18.4%

Revenue & EPS history

Watts · Revenue · Quarterly

$400M

Q4 2019+3.3%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Watts · $400M total across 3 segments · Q4 2019

  • Americas
    $268M+4.5%
  • Europe
    $114M-1.5%
  • APMEA
    $18.8M+17.5%

Forward guidance

We intend to continue to drive our long-term strategy and to invest for the future.”

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 2019

Historical avgQ4 2019

+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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