Water management solutions company Zurn Elkay (NYSE: ZWS) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
Zurn Elkay beat analysts’ revenue expectations last quarter, reporting revenues of $433 million, up 11.4% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Zurn Elkay a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Zurn Elkay’s revenue to grow 8.7% year on year, in line with the 7.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Zurn Elkay has a history of exceeding Wall Street’s expectations.
Looking at Zurn Elkay’s peers in the building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Apogee’s revenues decreased 1.1% year on year, beating analysts’ expectations by 3.4%, and AZZ reported revenues up 6.3%, topping estimates by 3.2%. AZZ traded down 1.9% following the results.
Read our full analysis of Apogee’s results here and AZZ’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the building products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Zurn Elkay is down 3.1% during the same time and is heading into earnings with an average analyst price target of $56.20 (compared to the current share price of $48.38).
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