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A Preview Of Watts Water Technologies's Earnings

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Watts Water Technologies (NYSE: WTS) unveils its next round of earnings this Wednesday, November 04. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Watts Water Technologies will report earnings of $0.87 per share on revenue of $363.25 million. Watts Water Technologies EPS in the same period a year ago totaled $1.04. Revenue was $394.70 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 16.35%. Sales would be down 7.97% from the year-ago period. Here is how the Watts Water Technologies's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.39 0.87 0.99 1.03
EPS Actual 0.74 0.95 1 1.04
Revenue Estimate 315.64 M 372.91 M 397.51 M 397.01 M
Revenue Actual 338.70 M 382.60 M 400.30 M 394.70 M

Stock Performance

Over the last 52-week period, shares are up 21.05%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Watts Water Technologies is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings