Zurn Elkay (ZWS) reports earnings tomorrow: what to expect

Water management solutions company Zurn Elkay (NYSE:ZWS) will be reporting results this Tuesday after market hours. Here’s what to expect.

Zurn Elkay beat analysts’ revenue expectations last quarter, reporting revenues of $491 million, up 10.5% year on year. It was a strong quarter for the company, with a decent 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 8.2% year on year, slowing from the 11.1% 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 Q3 results, giving us a hint as to what we can expect. Apogee delivered year-on-year revenue growth of 9.2%, beating analysts’ expectations by 11.3%, and AZZ reported revenues up 16.7%, topping estimates by 5.1%. Apogee traded up 15.3% following the results while AZZ’s stock price was unchanged.

Read our full analysis of Apogee’s results here and AZZ’s results here.

Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the 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 4.9% on average over the last month. Zurn Elkay is up 3.9% during the same time and is heading into earnings with an average analyst price target of $56.89 (compared to the current share price of $48.58).

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