Watts Water Technologies, Inc. (NYSE:WTS) Yearly Results: Here's What Analysts Are Forecasting For This Year
Watts Water Technologies, Inc. (NYSE:WTS) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to US$201 in the week after its latest annual results. Watts Water Technologies reported in line with analyst predictions, delivering revenues of US$2.1b and statutory earnings per share of US$7.82, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Watts Water Technologies
Taking into account the latest results, the most recent consensus for Watts Water Technologies from nine analysts is for revenues of US$2.25b in 2024. If met, it would imply a notable 9.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 6.1% to US$8.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.24b and earnings per share (EPS) of US$8.22 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$205, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Watts Water Technologies, with the most bullish analyst valuing it at US$217 and the most bearish at US$175 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Watts Water Technologies' growth to accelerate, with the forecast 9.4% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Watts Water Technologies to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$205, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Watts Water Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Watts Water Technologies going out to 2026, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
