Earnings Outlook For Zurn Elkay Water

Zurn Elkay Water ZWS will release its quarterly earnings report on Tuesday, 2024-10-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Zurn Elkay Water to report an earnings per share (EPS) of $0.32.

The announcement from Zurn Elkay Water is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.02, leading to a 0.68% increase in the share price on the subsequent day.

Here's a look at Zurn Elkay Water's past performance and the resulting price change:

Performance of Zurn Elkay Water Shares

Shares of Zurn Elkay Water were trading at $35.97 as of October 25. Over the last 52-week period, shares are up 37.0%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Zurn Elkay Water

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Zurn Elkay Water.

Zurn Elkay Water has received a total of 4 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $37.5, the consensus suggests a potential 4.25% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of AZEK Co, Armstrong World Indus and Trex Co, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for AZEK Co, with an average 1-year price target of $48.44, indicating a potential 34.67% upside.
• As per analysts' assessments, Armstrong World Indus is favoring an Neutral trajectory, with an average 1-year price target of $133.25, suggesting a potential 270.45% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for Trex Co, with an average 1-year price target of $79.54, implying a potential 121.13% upside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for AZEK Co, Armstrong World Indus and Trex Co, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Zurn Elkay Water ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is in the middle for Return on Equity.

Unveiling the Story Behind Zurn Elkay Water

Zurn Elkay Water Solutions Corp designs procure, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The Zurn Elkay product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.

Unraveling the Financial Story of Zurn Elkay Water

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining Zurn Elkay Water's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.18% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Zurn Elkay Water's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 11.16%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Zurn Elkay Water's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.87%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Zurn Elkay Water's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.72%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.34, Zurn Elkay Water adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Zurn Elkay Water visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.