Yahoo Finance Zurn Elkay Earnings: What To Look For From ZWS
Water management solutions company Zurn Elkay (NYSE:ZWS) will be announcing earnings results tomorrow after market close. Here's what to look for.
Zurn Elkay beat analysts' revenue expectations by 1.3% last quarter, reporting revenues of $373.8 million, flat year on year. It was a decent quarter for the company, with revenue and EPS exceeding expectations.
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 1.5% year on year to $409.2 million, slowing from the 41.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 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 Q2 results, giving us a hint as to what we can expect. A. O. Smith delivered year-on-year revenue growth of 6.6%, beating analysts' expectations by 2.5%, and Lennox reported revenues up 2.8%, falling short of estimates by 1.9%. A. O. Smith traded down 9.1% following the results while Lennox was also down 4.1%.
Read our full analysis of A. O. Smith's results here and Lennox's results here.
There has been positive sentiment among investors in the hvac and water systems segment, with share prices up 10.9% on average over the last month. Zurn Elkay is up 12.7% during the same time and is heading into earnings with an average analyst price target of $35.4 (compared to the current share price of $32.4).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
