NYSE$WTS

Watts Water Technologies Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Watts Water Technologies reported record results for Q4 and full year 2022.

Watts Water Technologies reported a 6% increase in Q4 sales to $502 million, with an 11% organic growth. GAAP EPS increased by 74% to $2.05, and adjusted EPS increased by 13% to $1.60. The company's performance was driven by double-digit organic growth in the Americas and benefits from price realization and productivity.

  • Q4 sales increased by 6% on a reported basis and 11% organically.
  • GAAP operating margin increased by 20 bps, and adjusted operating margin increased by 90 bps.
  • GAAP EPS increased by 74%, and adjusted EPS increased by 13%.
  • The company expects softer market conditions as 2023 progresses and is adjusting its cost structure accordingly.

Headline financials

Total Revenue

$502M

Previous: $474M+5.9%
EPS (adj)

$1.60

Previous: $1.42+12.7%
Total Organic Sales Growth

10.5%

Previous: 18.0%-41.7%
Americas Organic Sales Growth

10.7%

Previous: 19.0%-43.7%
Europe Organic Sales Growth

9.2%

Previous: 15.0%-38.7%
APMEA Organic Sales Growth

17.3%

Previous: 13.0%+33.1%
Capital Expenditures

$7.9M

Previous: $7.1M+11.3%
Free Cash Flow

$130M

Previous: $38.8M+234.5%
Net Income

$68.6M

Previous: $40.1M+71.1%
Operating Income

$67.2M

Previous: $62.6M+7.3%
Gross Profit

$219M

Previous: $199M+9.7%
Cash & Equivalents

$311M

Previous: $242M+28.4%
Total Assets

$1.93B

Previous: $1.86B+4.1%
Stock-Based Comp

$5.2M

Previous: $6.1M-14.8%

Revenue & EPS history

Watts · Revenue · Quarterly

$502M

Q4 2022+5.9%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Watts · $502M total across 3 segments · Q4 2022

  • Americas
    $350M+10.1%
  • Europe
    $128M-4.0%
  • APMEA
    $23.2M+5.5%

Forward guidance

Watts Water Technologies is monitoring the weakening global economic indicators and expects to see softer market conditions as 2023 progresses. The company has incorporated these expectations into its outlook and is taking actions as needed to adjust its cost structure. The balance sheet and cash flow remain strong.

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 2022

Historical avgQ4 2022

+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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