## Zurn Elkay Water (ZWS) Earnings Preview: What to Expect on October 29th
Investors are eagerly awaiting Zurn Elkay Water Solutions Corp’s (ZWS) quarterly earnings report, scheduled for release on Tuesday, October 29th, 2024. Analysts are forecasting an earnings per share (EPS) of $0.32, and the market is keen to see if the company can exceed these expectations and provide positive guidance for the coming quarter. Strong guidance is particularly important for investors, as it often influences stock price movements.
### A Look Back: Analyzing Zurn Elkay Water’s Past Performance
During the last quarter (Q2 2024), Zurn Elkay Water surprised investors by exceeding EPS estimates by $0.02. This positive result led to a 0.68% increase in the company’s share price the following day. Here’s a breakdown of Zurn Elkay Water’s past performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.31 | $0.33 | 1.0% |
| Q1 2024 | $0.26 | $0.29 | -2.0% |
| Q4 2023 | $0.23 | $0.26 | 4.0% |
| Q3 2023 | $0.27 | $0.29 | 3.0% |
The company’s share price has been on an upward trend over the last 52 weeks, rising by 37.0%. This positive trajectory suggests that long-term shareholders are likely optimistic going into this earnings release.
### Analyst Sentiment: What are the Experts Saying?
Understanding the market sentiment and expectations within the industry is crucial for investors. Let’s take a look at what analysts are saying about Zurn Elkay Water. The company has received a total of 4 ratings from analysts, with the consensus rating being ‘Outperform.’ The average one-year price target is $37.5, implying a potential 4.25% upside.
### A Peer Comparison: How Does Zurn Elkay Water Stack Up?
Comparing Zurn Elkay Water with its peers, AZEK Co, Armstrong World Indus, and Trex Co, gives us a valuable perspective on the company’s market positioning and relative performance expectations. Here’s a snapshot of the analyst ratings and average 1-year price targets for these key players:
| Company | Consensus Outlook | Average 1-Year Price Target | Potential Upside |
|—|—|—|—|
| AZEK Co | Neutral | $48.44 | 34.67% |
| Armstrong World Indus | Neutral | $133.25 | 270.45% |
| Trex Co | Neutral | $79.54 | 121.13% |
### Zurn Elkay Water’s Financials: A Deeper Dive
Zurn Elkay Water Solutions Corp designs, procures, manufactures, and markets a comprehensive range of clean water solutions for drinking water, hygiene, and sustainable water management. The company’s product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental, and site works products for both public and private spaces.
Examining Zurn Elkay Water’s financials reveals both strengths and areas for improvement. Here’s a key takeaway:
| Key Metric | Zurn Elkay Water | AZEK Co | Armstrong World Indus | Trex Co |
|—|—|—|—|—|
| Consensus | Outperform | Neutral | Neutral | Neutral |
| Revenue Growth | 2.18% | 12.08% | 12.20% | 5.59% |
| Gross Profit | $186.30M | $164.32M | $149.30M | $168.11M |
| Return on Equity | 2.87% | 3.61% | 10.17% | 10.24% |
Key Takeaway:
While Zurn Elkay Water boasts a strong product portfolio, it lags behind its peers in terms of revenue growth and gross profit. The company’s Return on Equity is in the middle of the pack. This suggests that Zurn Elkay Water may need to focus on improving its revenue generation and cost management strategies to enhance its financial performance.### What to Watch for in the Earnings Call
Investors should pay close attention to the following key areas during Zurn Elkay Water’s earnings call:
*
Guidance for the next quarter:
Investors will be looking for a strong outlook from Zurn Elkay Water, with an emphasis on revenue growth and profitability. Positive guidance could signal a strong future for the company, potentially driving up its stock price.*
Key financial metrics:
The company’s revenue growth, gross profit, and return on equity are critical indicators of its financial health. Any significant changes in these metrics should be closely monitored.*
Market share and competition:
Investors will be interested in hearing about Zurn Elkay Water’s market share and its competitive landscape.Stay tuned to our website for updates on Zurn Elkay Water’s earnings release and subsequent analysis.
