Boenning & Scattergood Downgrades Mueller Water Post Q4 Results

Boenning & Scattergood analyst Ryan Connors downgraded Mueller Water Products, Inc. MWA to Neutral from Outperform with no price target after the company's "disappointing" fiscal Q4 results.
Connors says, Management conceding to poor operating execution is "somewhat disconcerting" given that peers are thriving amid one of the biggest demand booms in over 20 years, and it is "tough to wave it aside as a one-off when MWA has a history of such hiccups."
He further thinks the quarterly report could "put investors in show-me mode."
Recently, the company reported Q4 and FY21 results, with Net Sales of $295.6 million (+11.4% Y/Y) in the Quarter, missing the consensus of $296.21 million.
Adjusted EPS of $0.12 missed the consensus of $0.19.
FY22 Outlook: The company currently anticipates consolidated net sales to increase 4% - 8%year-over-year, adjusted EBITDA to increase 4% - 8%. It expects to generate solid free cash flow during the fiscal year.
Price Action: MWA shares are trading lower by 11.9% at $15.3 on the last check Tuesday.

Earnings Calendar