Zurn Elkay Water Solutions Q3 sales rise on product category growth
Overview
US water management products maker's Q3 sales rose 9% yr/yr, slightly beating analyst expectations
Adjusted EPS for Q3 increased to $0.52 from $0.43 a year earlier
Company completed Intellihot acquisition, repurchased $35 mln shares, raised dividend 18%
Outlook
Company expects Q4 net sales of $430 mln to $437 mln
Company forecasts Q4 adjusted EBITDA of $120 mln to $123 mln
Company sees full-year free cash flow above $350 mln, excluding tariff refunds
Result Drivers
PRODUCT CATEGORY GROWTH - Co said core sales grew 7% yr/yr across nearly all product categories, with acquisitions adding 2%
PRODUCTIVITY INITIATIVES - Co attributed margin improvement to product mix, productivity initiatives and supply chain repositioning
NEW PRODUCTS - Co said launch of digital master mixing valve products expanded presence in hot water loop market
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $495.10 mln | $492.47 mln (8 Analysts) |
Q3 Net Income | $76.30 mln |
*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 "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Zurn Elkay Water Solutions Corp is $58.00, about 17.6% above its October 26 closing price of $49.32
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 27 three months ago
Reuters Recommended Reads
Oct 27 - Pentair Q3 sales beat estimates on water solutions growth; reaffirms profit guidance
Oct 27 - Water solutions firm Xylem Q3 revenue misses on projects timing, cautious spending
Oct 26 - Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)