NYSE$ZWS

Zurn Elkay Water Solutions Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Zurn Elkay Water Solutions' second quarter results exceeded expectations with increased sales and progress on strategic initiatives.

Zurn Elkay Water Solutions reported a 42% increase in net sales to $403 million for the second quarter of 2023. The company's adjusted EPS was $0.24, and adjusted EBITDA was $87 million, representing 21.6% of net sales. Demand trends remained constructive, with pro forma orders increasing high single digits year over year.

  • Net sales increased 42% to $403 million compared to the previous year's June quarter.
  • Net income from continuing operations was $33 million, with diluted EPS from continuing operations at $0.19.
  • Adjusted EPS was $0.24, compared to $0.32 in the year-ago quarter.
  • Adjusted EBITDA was $87 million, representing 21.6% of net sales, compared to $64 million in the previous year's second quarter.

Headline financials

Total Revenue

$403M

Previous: $284M+41.9%
EPS (adj)

$0.24

Previous: $0.32-25.0%
Adjusted Ebitda Margin

21.6%

Previous: 22.6%-4.4%
Free Cash Flow

$34.6M

Previous: $34.4M+0.6%
Net Income

$34.6M

Previous: $36.4M-4.9%
Operating Income

$54.8M

Previous: $53.5M+2.4%
Gross Profit

$174M

Previous: $114M+52.5%
Cash & Equivalents

$103M

Previous: $110M-6.7%
Total Assets

$2.8B

Previous: $1.18B+138.2%
Stock-Based Comp

$10.2M

Previous: $3.8M+168.4%

Revenue & EPS history

Zurn Elkay · Revenue · Quarterly

$403M

Q2 2023+41.9%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The company has increased the low end of its previously provided sales and Adjusted EBITDA outlook and is raising its free cash flow forecast for the year.

Tailwinds

  • Sales to be in the range of $1,525 million and $1,550 million.
  • Adjusted EBITDA to be in the range of $335 million to $345 million.
  • Free cash flow to total approximately $215 million.
  • Sales for the third quarter are expected to be in a range of $390 million to $400 million.
  • Consolidated Adjusted EBITDA margin for the third quarter is expected to range between 23.5% and 24.0%.

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 2023

Historical avgQ2 2023

+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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