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Mar 28, 2021
Watts Q1 2021 Earnings Report
Reported an increase in sales and earnings, driven by strong performance across all regions and effective cost management.
Key Takeaways
Watts Water Technologies reported strong Q1 2021 results, with sales increasing by 8% to $413 million and organic sales up by 4%. GAAP EPS and adjusted EPS both increased by 31% to $1.23 and $1.24, respectively. The company is increasing its full year outlook for 2021.
Sales increased 8% to $413 million; organic sales increased 4%.
GAAP operating margin of 14.4% and adjusted operating margin of 14.5%, both up 190 bps.
GAAP EPS of $1.23 and adjusted EPS of $1.24, both up 31%.
The company amended and extended existing credit facility in the second quarter, enhancing financial flexibility.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company anticipates that consolidated organic revenues may increase by 2% to 7% and consolidated adjusted operating margin may expand by 30 to 70 basis points, compared to last year.
Positive Outlook
- Consolidated organic revenues may increase by 2% to 7%.
- Consolidated adjusted operating margin may expand by 30 to 70 basis points compared to last year.
- Company maintains ample liquidity.
- Company continues to invest for the future.
- Company has navigated the pandemic well and is a stronger, more agile company.
Challenges Ahead
- Market uncertainties, including supply chain disruptions concerns.
- Inflation requires continued monitoring.
- Vaccine implementation outside of the United States requires continued monitoring.
- Market uncertainties could impact the second half performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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