Watts Q1 2024 Earnings Report
Key Takeaways
Watts Water Technologies reported record first quarter results with sales of $571 million, a 21% increase from the previous year. Organic sales increased by 6%. Reported EPS was $2.17, up 12%, and adjusted EPS was $2.33, up 21%. The company is increasing its full-year 2024 outlook.
Sales of $571 million increased 21%; organic sales increased 6% including ~7% due to extra shipping days.
Operating margin of 16.9%, down 110 bps; adjusted operating margin of 18.2%, up 30 bps.
EPS of $2.17, up 12%; adjusted EPS of $2.33, up 21%.
Increased full-year 2024 sales and margin outlook.
Watts
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Watts Revenue by Geographic Location
Forward Guidance
Watts Water Technologies is increasing its full year 2024 outlook. Organic sales growth is now expected to range from negative 4% to positive 1%, raising the midpoint by 50 basis points. Adjusted operating margin is now expected to range from 17.1% to 17.7%, raising the midpoint by 20 basis points.
Positive Outlook
- Organic sales growth is now expected to range from negative 4% to positive 1%.
- Adjusted operating margin is now expected to range from 17.1% to 17.7%.
- Integrations of recent acquisitions are progressing well.
- Balance sheet remains strong.
- Robust cash flow continues to support strategic investments.
Challenges Ahead
- Organic sales growth is expected to range from negative 4% to positive 1%.
- Adjusted operating margin is expected to range from 17.1% to 17.7%.
- Volume weakness in Europe.
- Inflation
- Macro-economic conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income