WTS Earnings Prediction
The chart below shows how WTS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WTS sees a -2.19% change in stock price 10 days leading up to the earnings, and a +2.58% change 10 days following the report. On the earnings day itself, the stock moves by +0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
WTS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
543.60M
7.79%
-8.99%
Gross Margin
47.30%
1.76%
-0.80%
Operating Margin
16.78%
-3.29%
-10.27%
Net Margin
12.71%
-2.61%
-7.43%
EPS
2.06
5.10%
-15.92%
No Data Available
WTS Earnings Analysis
Watts Water Technologies, Inc. Class A Corporation (WTS.N) Earnings Conference Call
Positive
Sales Performance Analysis: Sales of $544 million were up 8% on a reported basis and down 4% organically.
Operating Profit Improvement: Adjusted operating profit of $93 million increased 2% and adjusted operating margin of 17.1% exceeded expectations, primarily driven by productivity and cost controls.
EBITDA Growth and Margin Decline: Adjusted EBITDA of $106 million increased 5% and adjusted EBITDA margin of 20% was down 50 basis points, benefiting from price, productivity, favorable mix, and cost controls.
Free Cash Flow Increase: Year-to-date free cash flow was $204 million, up from $182 million in the comparable period last year, primarily due to the contribution from acquisitions.
Free Cash Flow Target Increase: We are increasing our fully year free cash flow conversion target to 100% or more of net income from the previously communicated 90% conversion.
Negative
Organic Sales Decline: During the quarter, organic sales were down 4%.
Americas Decline Factors: The decline in the Americas was partly due to project timing and inventory safety stock reductions within our wholesale channel.
Operating Margin Decline: Adjusted operating margin was down 90 basis points compared to last year, primarily due to acquisition dilution and European volume deleverage.
Sales Decline in Europe: Organic sales in Europe were down 12% and reported sales were down 11%.
Operating Income Decline: Adjusted operating income decreased 10% while adjusted operating margins decreased 260 basis points.
WTS FAQs
How does WTS typically perform around its earnings report dates?
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WTS Earning Call Sentiment
Watts Water Technologies, Inc. (WTS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WTS.N
7.63%Positive
The earnings call summary indicates strong financial health with a negative net leverage, suggesting robust cash flow. The Q&A section reveals management's confidence in certain markets and strategic adjustments, despite challenges in the European heat pump market. No major negative concerns were highlighted. The overall sentiment is positive, as management is addressing market challenges and exploring future growth opportunities. With no market cap data, a positive stock price movement of 2% to 8% is anticipated over the next two weeks.
