Zurn Elkay Water Solutions Cor (NYSE:ZWS) Announces Quarterly Earnings Results

Key Points

• Zurn Elkay Water Solutions exceeded quarterly expectations, reporting EPS of $0.52 versus the $0.50 consensus estimate and revenue of $495.10 million compared with estimates of $493.36 million.
• The company increased its quarterly dividend to $0.13 per share from $0.11, implying an annualized dividend of $0.52 and a 1.1% yield.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $57.00, while shares recently traded near $49.20.

Zurn Elkay Water Solutions Cor (NYSE:ZWS - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.02, FiscalAI reports. Zurn Elkay Water Solutions Cor had a return on equity of 18.01% and a net margin of 15.45%. The firm had revenue of $495.10 million for the quarter, compared to analyst estimates of $493.36 million.

Zurn Elkay Water Solutions Cor Stock Performance

NYSE:ZWS traded down $0.12 during mid-day trading on Tuesday, hitting $49.20. 1,315,941 shares of the stock were exchanged, compared to its average volume of 994,757. The stock has a market capitalization of $8.16 billion, a price-to-earnings ratio of 30.37, a price-to-earnings-growth ratio of 1.77 and a beta of 1.07. The firm's 50-day simple moving average is $47.45 and its 200 day simple moving average is $48.26. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.13 and a current ratio of 3.05. Zurn Elkay Water Solutions Cor has a fifty-two week low of $43.06 and a fifty-two week high of $55.00.

Zurn Elkay Water Solutions Cor Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Friday, November 20th will be paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.1%. This is an increase from Zurn Elkay Water Solutions Cor's previous quarterly dividend of $0.11. The ex-dividend date is Friday, November 20th. Zurn Elkay Water Solutions Cor's dividend payout ratio is 27.16%.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Barclays lifted their target price on Zurn Elkay Water Solutions Cor from $59.00 to $61.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. The Goldman Sachs Group restated a "neutral" rating and issued a $55.00 price target on shares of Zurn Elkay Water Solutions Cor in a research note on Wednesday, July 29th. Stifel Nicolaus raised their price target on Zurn Elkay Water Solutions Cor from $56.00 to $62.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Oppenheimer raised their price target on Zurn Elkay Water Solutions Cor from $58.00 to $60.00 and gave the company an "outperform" rating in a report on Wednesday, September 9th. Finally, Royal Bank Of Canada reduced their price objective on shares of Zurn Elkay Water Solutions Cor from $58.00 to $54.00 and set a "sector perform" rating for the company in a research report on Wednesday, October 14th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $57.00.

Insider Buying and Selling

In other news, Director Jacques Butler acquired 2,016 shares of the stock in a transaction on Wednesday, August 19th. The shares were purchased at an average price of $49.60 per share, for a total transaction of $99,993.60. Following the transaction, the director directly owned 37,487 shares of the company's stock, valued at approximately $1,859,355.20. This represents a 5.68% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.40% of the stock is currently owned by corporate insiders.

Zurn Elkay Water Solutions Cor Company Profile

Zurn Elkay Water Solutions Corporation NYSE: ZWS is a manufacturer of products and systems used to manage, conserve and protect water in commercial, institutional, industrial and residential buildings. The company provides plumbing and water-management solutions designed to support water distribution, drainage, safety, hygiene and efficiency.

Its product portfolio includes commercial faucets, flush valves, fixtures, drains, plumbing specialties, backflow-prevention devices, water coolers, bottle-filling stations, water filtration systems and related accessories.

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