NYSE$WTS

Watts Water Technologies Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Watts reported better than expected sales in Americas and Europe, driven by aggressive cost actions.

Watts Water Technologies reported a 1% increase in sales to $403 million, with a 2% decline in organic sales. GAAP EPS was $0.86, down 8%, while adjusted EPS was $1.15, up 15%. The company's performance was driven by better than anticipated sales in the Americas and Europe, along with continued cost action savings.

  • Reported sales increased 1% to $403 million; organic sales declined 2%.
  • GAAP and adjusted operating margin of 13.5% and 13.6%, respectively; up 170 bps on GAAP basis, up 110 bps on adjusted basis.
  • GAAP EPS of $0.86, down 8% vs. last year; adjusted EPS of $1.15, up 15%.
  • Full year 2020 operating cash flow of $229 million and full year free cash flow of $187 million, an 18% and 14% increase, respectively, over the prior year.

Headline financials

Total Revenue

$403M

Previous: $400M+0.8%
EPS (adj)

$1.15

Previous: $1.00+15.0%
Total Organic Sales Growth

-2.0%

Previous: 3.8%-152.6%
Americas Organic Sales Growth

-2.0%

Previous: 3.6%-155.6%
Europe Organic Sales Growth

-2.0%

Previous: 1.7%-217.6%
APMEA Organic Sales Growth

-8.0%

Previous: 20.3%-139.4%
Capital Expenditures

$10M

Previous: $10.1M-1.0%
Free Cash Flow

$91.4M

Previous: $165M-44.6%
Net Income

$29.2M

Previous: $31.8M-8.2%
Operating Income

$54.4M

Previous: $47.3M+15.0%
Gross Profit

$169M

Previous: $170M-0.5%
Cash & Equivalents

$219M

Previous: $220M-0.4%
Total Assets

$1.74B

Previous: $1.72B+0.9%
Stock-Based Comp

$3.9M

Previous: $4.5M-13.3%

Revenue & EPS history

Watts · Revenue · Quarterly

$403M

Q4 2020+0.8%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Watts · $403M total across 3 segments · Q4 2020

  • Americas
    $264M-1.3%
  • Europe
    $120M+5.5%
  • APMEA
    $19.1M+1.6%

Forward guidance

COVID-19 will continue to affect our business in 2021, but I am confident that our experienced team will again proactively manage the business to meet and exceed the expectations of our customers.

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 2020

Historical avgQ4 2020

+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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