Water management solutions company Zurn Elkay (NYSE: ZWS) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
Zurn Elkay beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $388.8 million, up 4% 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 3.2% year on year to $425.2 million, improving from the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zurn Elkay has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at Zurn Elkay’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 2.5%, and A. O. Smith reported a revenue decline of 1.3%, topping estimates by 1.2%. Lennox traded up 7.2% following the results while A. O. Smith was also up 1%.
Read our full analysis of Lennox’s results here and A. O. Smith’s results here.
There has been positive sentiment among investors in the building products segment, with share prices up 6.8% on average over the last month. Zurn Elkay is up 5.2% during the same time and is heading into earnings with an average analyst price target of $38.57 (compared to the current share price of $38.47).
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