As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at water infrastructure stocks, starting with Energy Recovery (NASDAQ:ERII).
Since October 2024, Watts Water Technologies has been in a holding pattern, posting a small return of 3.6% while floating around $207.70. However, the stock is beating the S&P 500’s 6.9% decline during that period.
The instruments space is likely to benefit from the diligent focus on energy-efficient production processes and integrated software systems. Thus, here is a short look at 3 stocks in the industry that may benefit from the favorable environment.
The Russell 2000 is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
Let’s dig into the relative performance of Watts Water Technologies (NYSE:WTS) and its peers as we unravel the now-completed Q4 water infrastructure earnings season.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Tennant (NYSE:TNC) and the rest of the water infrastructure stocks fared in Q4.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how water infrastructure stocks fared in Q4, starting with Xylem (NYSE:XYL).
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems confused about where we could go next.
This uncertainty has led to a flat return for the industry over the past six months while the S&P 500 was up 6.4%.
Shares of water management manufacturer Watts Water (NYSE:WTS)
jumped 10.2% in the morning session after the company reported strong fourth-quarter results that exceeded analysts' EPS expectations, with organic revenue slightly surpassing Wall Street's estimates. Margin expansion contributed to the earnings beat as improved pricing and productivity offset volume declines, inflation, and acquisition-related costs.
The improved margins likely reassured investors, easing concerns over weak top-line growth. Notably, sales dropped 1% y/y on a reported basis and 5% organically, largely due to fewer shipping days.
Looking ahead, sales guidance for 2025 was mixed, with projected revenue growth ranging from -3% to +2%, and adjusted operating margin is expected to be mostly flat. Overall, this quarter had some key positives.
Water management manufacturer Watts Water (NYSE:WTS) reported Q4 CY2024 results exceeding the market’s revenue expectations, but sales fell by 1.3% year on year to $540.4 million. Its non-GAAP profit of $2.05 per share was 7.3% above analysts’ consensus estimates.
Looking back on industrial machinery stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including 3D Systems (NYSE:DDD) and its peers.
The instruments industry appears to be mired in unpredictable raw material prices, high capital expenditures for infrastructure upgrades, and market volatility. Amid this uncertainty, here are stocks in the space that may overcome these challenges.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the water infrastructure industry, including Mueller Water Products (NYSE:MWA) and its peers.
