Water management solutions company Zurn Elkay (NYSE:ZWS) will be reporting results tomorrow after market close. Here’s what to look for.
Zurn Elkay met analysts’ revenue expectations last quarter, reporting revenues of $412 million, up 2.2% year on year. It was a decent quarter for the company, with a solid beat of analysts’ operating margin 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% year on year to $406.2 million, a reversal from the 4.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at Zurn Elkay’s peers in the hvac and water systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 5.9%, and A. O. Smith reported a revenue decline of 3.7%, in line with consensus estimates. Lennox traded up 4.3% following the results while A. O. Smith was down 1.7%.
Read our full analysis of Lennox’s results here and A. O. Smith’s results here.
Investors in the hvac and water systems segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Zurn Elkay’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $37 (compared to the current share price of $35.97).
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