Mueller Water Q4 sales slightly miss
Overview
U.S. water infrastructure supplier's Q4 sales slightly missed analyst expectations, adjusted EPS matched consensus
Adjusted EBITDA and adjusted operating income for Q4 beat analyst expectations
Company increased share repurchase authorization by $300 mln and raised quarterly dividend
Outlook
Mueller Water Products sees fiscal 2027 net sales of $1.44 bln to $1.47 bln
Company expects fiscal 2027 adjusted EBITDA of $378 mln to $388 mln
Company expects higher adjusted EBITDA margin in 2H fiscal 2027
Result Drivers
LOWER VOLUMES - Co said Q4 net sales declined 1.1% year-over-year, primarily due to lower volumes, partially offset by higher pricing across most product lines
HIGHER PRICING - Co said higher pricing across most product lines contributed to improved margins and partially offset lower volumes
LOWER SG&A EXPENSES - Co attributed improved operating income and margins to lower selling, general and administrative expenses, including reduced incentive-based compensation and personnel costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Miss* | $376.50 mln | $378.63 mln (5 Analysts) |
Q4 Adjusted EPS | Meet | $0.38 | $0.38 (6 Analysts) |
Q4 Net Income | $52.30 mln | ||
Q4 Adjusted EBITDA | Beat | $95.50 mln | $93.26 mln (5 Analysts) |
Q4 Adjusted Operating Income | Beat | $82.60 mln | $80.61 mln (5 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Mueller Water Products, Inc. is $27.00, about 14.6% above its November 3 closing price of $23.57
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)