NYSE$WTS

Watts Water Technologies Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Watts' Q4 2021 results were marked by record sales and EPS, driven by organic growth across all regions, despite facing supply chain and inflationary pressures.

Watts Water Technologies reported record fourth-quarter and full-year 2021 results. Q4 sales reached $474 million, up 18% on a reported and organic basis, with a GAAP EPS of $1.18, up 37%, and an adjusted EPS of $1.42, up 23%. The company's performance was driven by strong organic growth across all regions, despite facing ongoing challenges from the pandemic, including supply chain disruptions and inflationary pressures.

  • Q4 sales increased by 18% on a reported and organic basis, reaching $474 million.
  • GAAP EPS for Q4 was $1.18, a 37% increase, and adjusted EPS was $1.42, a 23% increase.
  • All three regions delivered record results for the quarter and the full year.
  • The company successfully addressed employee safety, customer engagement, product development, and productivity goals while achieving record sales and earnings per share.

Headline financials

Total Revenue

$474M

Previous: $403M+17.5%
EPS (adj)

$1.42

Previous: $1.15+23.5%
Total Organic Sales Growth

18.0%

Previous: -2.0%+1000.0%
Americas Organic Sales Growth

19.0%

Previous: -2.0%+1050.0%
Europe Organic Sales Growth

15.0%

Previous: -2.0%+850.0%
APMEA Organic Sales Growth

13.0%

Previous: -8.0%+262.5%
Capital Expenditures

$7.1M

Previous: $10M-29.0%
Free Cash Flow

$38.8M

Previous: $91.4M-57.5%
Net Income

$40.1M

Previous: $29.2M+37.3%
Operating Income

$62.6M

Previous: $54.4M+15.1%
Gross Profit

$199M

Previous: $169M+17.8%
Cash & Equivalents

$242M

Previous: $219M+10.6%
Total Assets

$1.86B

Previous: $1.74B+6.8%
Stock-Based Comp

$6.1M

Previous: $3.9M+56.4%

Revenue & EPS history

Watts · Revenue · Quarterly

$474M

Q4 2021+17.5%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Watts · $474M total across 3 segments · Q4 2021

  • Americas
    $318M+20.4%
  • Europe
    $134M+11.4%
  • APMEA
    $22M+15.2%

Forward guidance

The company is confident in its prospects for delivering revenue and EPS growth in 2022, with its long-term strategy remaining intact.

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 2021

Historical avgQ4 2021

+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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