Watts Water Technologies Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Investors never know what to expect for Watts Water Technologies (NYS: WTS) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Tuesday, August 2. Watts Water Technologies designs, manufactures and sells a line of water safety and flow control products for the water quality, water conservation, water safety and water flow control markets.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Watts Water Technologies with nine of 14 analysts rating it hold. Analysts don't like Watts Water Technologies as much as competitor Curtiss-Wright overall. Four out of nine analysts rate Curtiss-Wright a buy compared to five of 14 for Watts Water Technologies. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $363 million in revenue this quarter. That would represent a rise of 12% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.49 per share. Estimates range from $0.44 to $0.59.

What our community says:
CAPS All-Stars are solidly behind the stock with 98.4% awarding it an "outperform" rating. The community at large concurs with the All-Stars with 95.4% assigning it a rating of "outperform." Fools are gung-ho about Watts Water Technologies and haven't been shy with their opinions lately, logging 131 posts in the past 30 days. Even with a robust four out of five stars, Watts Water Technologies' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Watts Water Technologies' income has fallen year over year by an average of 72.1%.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

QuarterQ1Q4Q3Q2
Gross Margin36.7%35.6%36.2%37.2%
Operating Margin6.9%7.4%10%10.3%
Net Margin3.4%3.6%5.5%6.8%

For all our Watts Water Technologies-specific analysis, including earnings and beyond, add Watts Water Technologies to My Watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners