Water management solutions company Zurn Elkay (NYSE:ZWS) will be reporting results tomorrow after the bell. Here’s what to expect.
Zurn Elkay beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $410 million, up 2.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ organic revenue estimates.
Is Zurn Elkay a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Zurn Elkay’s revenue to grow 2.9% year on year to $367.2 million, slowing from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zurn Elkay has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Zurn Elkay’s peers in the hvac and water systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 8.9%, and CSW reported revenues up 10.7%, topping estimates by 0.9%. Lennox traded down 8.5% following the results while CSW was also down 4.4%.
Read our full analysis of Lennox’s results here and CSW’s results here.
Investors in the hvac and water systems segment have had steady hands going into earnings, with share prices flat over the last month. Zurn Elkay is up 6% during the same time and is heading into earnings with an average analyst price target of $40.14 (compared to the current share price of $39.12).
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