Yahoo Finance Results: Watts Water Technologies, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Watts Water Technologies, Inc. (NYSE:WTS) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 4.8% to hit US$571m. Statutory earnings per share (EPS) came in at US$2.17, some 6.0% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Watts Water Technologies
Following the latest results, Watts Water Technologies' eight analysts are now forecasting revenues of US$2.27b in 2024. This would be a modest 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 4.8% to US$8.48. Before this earnings report, the analysts had been forecasting revenues of US$2.26b and earnings per share (EPS) of US$8.34 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$206, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Watts Water Technologies, with the most bullish analyst valuing it at US$225 and the most bearish at US$175 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Watts Water Technologies'historical trends, as the 7.0% annualised revenue growth to the end of 2024 is roughly in line with the 7.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So although Watts Water Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$206, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Watts Water Technologies going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Watts Water Technologies that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
