NYSE$WTS

Watts Water Technologies Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Watts reported record results driven by strategic acquisitions and effective cost management.

Watts Water Technologies reported record fourth-quarter and full-year results for 2023. Sales increased by 9% to $548 million, and adjusted EPS rose by 23% to $1.97. The company completed the acquisitions of Bradley Corporation and Josam Company, expanding its market presence. While monitoring weakening global economic indicators, Watts is taking actions to adjust its cost structure and remains confident in navigating the dynamic operating environment.

  • Sales increased by 9% to $548 million.
  • Adjusted EPS increased by 23% to $1.97.
  • Operating margin increased by 100 bps to 14.4%.
  • Completed the acquisitions of Bradley Corporation and Josam Company.

Headline financials

Total Revenue

$548M

Previous: $502M+9.1%
EPS (adj)

$1.97

Previous: $1.60+23.1%
Total Organic Sales Growth

-0.6%

Previous: 10.5%-105.7%
Americas Organic Sales Growth

0.9%

Previous: 10.7%-91.6%
Europe Organic Sales Growth

-5.3%

Previous: 9.2%-157.6%
APMEA Organic Sales Growth

3.5%

Previous: 17.3%-79.8%
Capital Expenditures

-$10.7M

Previous: $7.9M-235.4%
Net Income

$55.8M

Previous: $68.6M-18.7%
Operating Income

$78.8M

Previous: $67.2M+17.3%
Gross Profit

$256M

Previous: $219M+17.0%
Stock-Based Comp

$5.7M

Previous: $5.2M+9.6%

Revenue & EPS history

Watts · Revenue · Quarterly

$548M

Q4 2023+9.1%vs Q4 2022
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

As Watts enters 2024, the company is monitoring weakening global economic indicators. They are expecting softer market conditions as the year progresses and have incorporated these expectations into their outlook. They are taking actions as needed to adjust their cost structure and are confident that their experienced team is well-equipped to navigate the dynamic operating environment.

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 2023

Historical avgQ4 2023

+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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