NYSE$ZWS

Zurn Elkay Water Solutions Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Zurn Elkay Water Solutions reported strong growth in the second quarter of 2022, with net sales increasing by 17% and adjusted EPS rising to $0.32.

Zurn Elkay Water Solutions reported a strong second quarter with a 17% increase in net sales to $284 million and adjusted EPS of $0.32. Core sales grew by 15%, and the company successfully completed its combination with Elkay Manufacturing Company on July 1, 2022.

  • Completed the combination with Elkay Manufacturing Company on July 1, 2022.
  • Net sales increased 17% to $284 million compared to the previous year.
  • Net income from continuing operations was $36 million, with diluted EPS of $0.28.
  • Adjusted EPS was $0.32 compared to $0.22 in the year-ago quarter.

Headline financials

Total Revenue

$284M

Previous: $568M-50.0%
EPS (adj)

$0.32

Previous: $0.61-47.5%
Adjusted Ebitda Margin

22.6%

Previous: 23.5%-3.8%
Core Sales Growth

15.0%

No prior period
Capital Expenditures

-$2M

Previous: -$4.8M+58.3%
Free Cash Flow

$34.4M

Previous: $68.4M-49.7%
Net Income

$36.4M

Previous: $73.2M-50.3%
Operating Income

$53.5M

Previous: $104M-48.4%
Gross Profit

$114M

Previous: $236M-51.7%
Cash & Equivalents

$110M

Previous: $391M-71.7%
Total Assets

$1.18B

Previous: $3.6B-67.3%
Stock-Based Comp

$3.8M

Previous: $12.2M-68.9%

Revenue & EPS history

Zurn Elkay · Revenue · Quarterly

$284M

Q2 2022-50%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the third quarter of 2022, Zurn sales are expected to increase by a high-teens percentage over the prior year, with Elkay sales between $145 and $155 million. The consolidated Adjusted EBITDA margin, excluding corporate costs, is anticipated to range between 21.0% and 22.0%, and corporate expenses are expected to approximate $7 million.

Tailwinds

  • Zurn sales expected to increase by a high-teens percentage
  • Elkay sales to be between $145 and $155 million
  • Consolidated Adjusted EBITDA margin, excluding corporate costs, to range between 21.0% and 22.0%
  • Anticipate at least 100 bps of margin expansion from the Zurn Elkay proforma combined Adjusted EBITDA margin in the prior year third quarter.

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 Q2 2022

Historical avgQ2 2022

+1.0%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+4.7%

Avg return

30 days after

62%

36 / 58 earnings

Positive

+13.5%

Q4 2020

Best reaction

-18.5%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.4%+10.1%+0.1%
Q4 2025+10.0%+11.6%+0.7%
Q3 2025+3.6%+2.2%+3.6%
Q1 2025+4.9%+8.3%+14.1%
Q4 2024-3.3%-3.6%-10.2%
Q3 2024-0.4%+2.8%+10.0%
Q2 2024+0.7%-5.3%+0.0%
Q1 2024+0.1%-1.2%-1.1%
Q4 2023+6.4%+3.3%+2.7%
Q3 2023+5.0%+9.9%+13.0%
Q2 2023+6.6%+11.4%+5.6%
Q1 2023-4.5%+0.7%+3.7%
Q4 2022+8.0%+4.3%+0.0%
Q3 2022-8.1%-5.8%+2.6%
Q2 2022-8.9%-6.9%-2.6%
Q1 2022-7.1%-10.3%-20.4%
Q4 2021+4.9%+0.7%+8.7%
Q3 2021-1.1%-0.3%+2.1%
Q2 2021+9.2%+8.7%+22.4%
Q1 2021+1.6%+2.8%+5.9%
Q4 2020+13.5%+11.7%+18.6%
Q3 2020-4.1%-0.0%+19.5%
Q2 2020-1.2%-5.4%-2.7%
Q1 2020-9.4%-13.5%+22.0%
Q4 2019+1.4%+0.5%+4.5%
Q3 2019+5.3%+6.1%+9.1%
Q2 2019+11.0%+17.3%+15.3%
Q1 2019-0.9%-0.7%+2.8%
Q4 2018-1.2%+0.6%+4.0%
Q3 2018+4.5%-2.9%-0.2%
Q2 2018-2.2%-1.9%-4.0%
Q1 2018+0.4%-0.6%+0.5%
Q4 2017-0.3%-0.3%+1.2%
Q3 2017-1.1%+1.9%+4.6%
Q2 2017-11.7%-6.2%+3.7%
Q1 2017+2.5%+0.5%+10.7%
Q4 2016-3.1%
Q3 2016+2.8%
Q2 2016+10.4%
Q1 2016+2.6%
Q4 2015-6.6%
Q3 2015+1.6%
Q2 2015-3.8%
Q1 2015+0.8%
Q4 2014-4.5%
Q3 2014-4.3%
Q2 2014+6.1%
Q1 2014+4.7%
Q4 2013+5.4%
Q3 2013+3.5%
Q3 2012+3.5%
Q2 2013+1.6%
Q1 2012-18.5%
Q1 2013+1.6%
Q4 2012+2.6%
Q4 2011+2.6%
Q2 2012+2.6%
Q4 2010+2.6%

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