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).
Trends towards conservation and reducing groundwater depletion are putting water infrastructure and treatment products front and center. Companies that can innovate and create solutions–especially automated or connected solutions–to address these thematic trends will create incremental demand and speed up replacement cycles. On the other hand, water infrastructure and treatment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.
The 5 water infrastructure stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.1%.
In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.
Xylem (NYSE:XYL)
Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.
Xylem reported revenues of $2.26 billion, up 6.5% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
“The team delivered a strong fourth quarter to close a record-breaking year for Xylem,” said Matthew Pine, Xylem’s CEO.
Interestingly, the stock is up 5.4% since reporting and currently trades at $129.29.
Is now the time to buy Xylem? Access our full analysis of the earnings results here, it’s free.
Best Q4: Energy Recovery (NASDAQ:ERII)
Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.
Energy Recovery reported revenues of $67.08 million, up 17.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The market seems content with the results as the stock is up 2.5% since reporting. It currently trades at $15.05.
Is now the time to buy Energy Recovery? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Tennant (NYSE:TNC)
As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors.
Tennant reported revenues of $328.9 million, up 5.6% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.
Tennant delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.7% since the results and currently trades at $85.03.
Read our full analysis of Tennant’s results here.
Mueller Water Products (NYSE:MWA)
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Mueller Water Products reported revenues of $304.3 million, up 18.7% year on year. This number surpassed analysts’ expectations by 5.4%. It was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Mueller Water Products scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 8.9% since reporting and currently trades at $25.16.
Read our full, actionable report on Mueller Water Products here, it’s free.
Watts Water Technologies (NYSE:WTS)
Founded in 1874, Watts Water (NYSE:WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.
Watts Water Technologies reported revenues of $540.4 million, down 1.3% year on year. This print topped analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.
Watts Water Technologies had the slowest revenue growth among its peers. The stock is up 1.5% since reporting and currently trades at $212.28.
Read our full, actionable report on Watts Water Technologies here, it’s free.
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