ZWS Earnings Prediction
The chart below shows how ZWS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZWS sees a -2.26% change in stock price 10 days leading up to the earnings, and a +0.21% change 10 days following the report. On the earnings day itself, the stock moves by +0.81%. This data can give you a slight idea of what to expect for the next quarter's release.
ZWS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
370.70M
3.90%
-9.59%
Gross Margin
39.49%
-0.20%
-7.28%
Operating Margin
14.38%
7.80%
-19.12%
Net Margin
9.74%
157.67%
-8.20%
EPS
0.21
162.50%
-16.00%
No Data Available
ZWS Earnings Analysis
Zurn Elkay Water Solutions Corp Corporation (ZWS.N) Earnings Conference Call
Positive
Core Growth and EBITDA Increase: Fourth quarter core growth of 4% led to an 8% adjusted EBITDA growth, driving margins to 24.6%, up 100 basis points year-over-year.
EBITDA Growth and Margins: For the full year, EBITDA grew about 15% to $390 million, with margins ending at 24.9%, an increase of 270 basis points.
Strong Cash Generation: Free cash flow for the quarter was $55 million, totaling $272 million for the year, indicating strong cash generation capabilities.
Share Repurchase Commitment: Share repurchases totaled $150 million for the year at an average price of just under $32, reflecting a commitment to returning capital to shareholders.
Net Debt Leverage Achievement: The company achieved a net debt leverage of 0.8x, providing significant financial flexibility for future capital allocation.
Negative
Sales Growth Slowdown: Fourth quarter sales totaled $371 million, reflecting only 4% core growth year-over-year, indicating a slowdown in growth compared to previous periods.
Sales Performance Challenges: Softness in residential and pockets of the commercial segment within non-residential markets negatively impacted overall sales performance, suggesting challenges in these key areas.
Commercial Market Decline Concerns: The projected low single-digit decline in commercial end markets for 2025 raises concerns about future revenue generation and market demand.
Adjusted EBITDA Margin Outlook: The anticipated adjusted EBITDA margin for the first quarter of 2025 is projected to be between 24.5% to 25%, which represents only marginal improvement and indicates potential margin pressure ahead.
Tariff Environment Uncertainties: The company faces uncertainties related to the tariff environment, which could adversely affect costs and pricing strategies in the upcoming year.
ZWS FAQs
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ZWS Earning Call Sentiment
Zurn Elkay Water Solutions Corporation (NYSE:ZWS) Q4 2024 Earnings Call Transcript
ZWS.N
-2.92%Positive
The earnings call indicates strong financial performance with an 8% increase in adjusted EBITDA and a 100 basis points margin expansion. The company is actively reducing exposure to China, which is a proactive risk management strategy. Despite some market challenges, the company's guidance remains optimistic with continued growth in institutional markets. The significant share repurchase and dividend increases further support a positive outlook. However, uncertainties around tariffs and economic factors are noted, but overall sentiment leans positive given the strategic actions and financial health.
