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Mar 29, 2020
Watts Q1 2020 Earnings Report
Watts Water Technologies reported first quarter results, experiencing a sales decrease and implementing measures to mitigate the impact of COVID-19.
Key Takeaways
Watts Water Technologies reported a 2% decrease in sales and a 1% organic sales decrease due to the COVID-19 pandemic. Despite these challenges, the company's GAAP EPS increased by 3% and adjusted EPS increased by 1%. They are withdrawing 2020 full year outlook due to COVID-19 uncertainty.
Sales decreased by 2% overall and 1% organically, impacted by COVID-19.
GAAP operating margin increased by 50 bps, while adjusted operating margin increased by 20 bps.
GAAP and adjusted EPS both saw increases, up 3% and 1% respectively.
The company is withdrawing its 2020 full year outlook due to the uncertainty caused by COVID-19.
Watts
Watts
Watts Revenue by Segment
Watts Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAPMEA Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAPMEA Revenue
CapyFin.com Forward Guidance
Due to the uncertainty created by COVID-19, Watts Water Technologies is withdrawing its 2020 full year outlook. The company is focusing on cost reduction and cash preservation programs.
Positive Outlook
- Focusing on managing what is within our control
- Addressing COVID-19 disruptions by initiating various cost reduction and cash preservation programs to mitigate its impact.
- Continue to implement these programs over the remainder of 2020.
- Believe the actions we have taken over the last several years to strengthen our portfolio and increase customer intimacy, along with aggressively paying down debt, has put us in a very strong financial position.
- Maintain ample liquidity to work through these uncertain times, and we expect to continue to invest for the future.
Challenges Ahead
- COVID-19 pandemic has resulted in lower demand and volume declines.
- Operationally, the COVID-19 pandemic has resulted in lower demand and volume declines.
- Planning to temporarily suspend our stock repurchase program
- Reducing capital expenditures
- Deferring payment of employer payroll tax expenditures
Revenue & Expenses
Visualization of income flow from segment revenue to net income