Watts Q1 2021 Earnings Report
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.
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Watts 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.
- Supply chain disruptions could impact the second half performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income