Equity Profile

WTS

Watts Water Technologies, Inc.

IndustrialsIndustrial Machinery & Supplies & Components$10.5B

May6Wed

Post-Earnings Recap

ReportedQ1-2026After Close4:30 PM EDT

Watts Water Technologies Beats on EPS, Stock Up 0.1%

Metric	Actual	Expected	Surprise
EPS	$3.04	$2.68	+11.64%
Revenue	—	$636M	—

management commentary, guidance changes, and full analysis available with Pro.

Watts Water Technologies Beats on EPS, Stock Up 0.1%

Key Numbers

Metric	Actual	Expected	Surprise
EPS	$3.04	$2.68	+11.64%
Revenue	—	$636M	—

Management Commentary

Tone: Unknown

No transcript is on record, and the analysis is based on numerical results only.

What It Means

Watts Water Technologies reported better-than-expected earnings per share, which contributed to a slight increase in the stock price. However, there was no revenue figure provided, leaving some uncertainty about overall performance. The stock's modest gain of 0.1% reflects cautious investor sentiment following the earnings report.

Company Snapshot

Watts Water Technologies, Inc. (WTS) operates in the industrial sector, focusing on water quality and flow control solutions....

Key Metrics to Watch

EPS

Earnings per share is crucial as it reflects the company's profitability and is a key indicator of financial health.

$2.68

Revenue

Revenue figures provide insight into the company's sales performance and market demand for its products.

$636M

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Watts Water Technologies, Inc. (WTS) operates in the industrial sector, focusing on water quality and flow control solutions. The company is significant as it addresses critical needs in water management, which is increasingly important in today's climate-conscious environment.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+9.58%

Avg Stock Reaction

+0.38%

Last Quarter Recap

In the last quarter, Watts Water Technologies reported an EPS of $2.62, exceeding estimates by 10.88%. Despite this positive surprise, the stock saw a slight decline the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect Watts Water to continue its trend of beating earnings estimates, with a consensus EPS of $2.68 for Q1-2026. However, there are concerns about potential revenue growth amid economic uncertainties.

Bull Case

If the company can leverage its strong product portfolio and capitalize on increasing demand for water solutions, it may exceed revenue expectations and drive stock prices higher.

Bear Case

On the other hand, if economic conditions worsen or if there are supply chain disruptions, the company may struggle to meet revenue targets, leading to a disappointing earnings report.

Key Metrics to Watch

EPS

$2.68

Earnings per share is crucial as it reflects the company's profitability and is a key indicator of financial health.

Revenue

$636M

Revenue figures provide insight into the company's sales performance and market demand for its products.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will the company achieve revenue of at least $636M?

This figure is crucial as it reflects the company's ability to meet market demand and could influence investor sentiment significantly.

What are the management's insights on supply chain stability?

Given the recent global supply chain challenges, any commentary on this topic will be closely watched for its potential impact on future performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for revenue growth driven by increased demand for water management solutions, which could lead to a significant upside.

Supporting Evidence

The company's consistent history of beating EPS estimates suggests strong operational performance.

Options pricing indicates a higher expected move than historical averages, suggesting traders anticipate a significant reaction.

The lack of recent peer reports may indicate a unique positioning for Watts Water compared to its competitors.

Key Risk

If revenue growth comes in below $625M, it could challenge the bullish sentiment surrounding the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on the company's ability to navigate economic challenges while maintaining sales growth.

Bull Confirmed If

Revenue growth exceeding $636M would confirm the bull case.

Bear Confirmed If

Revenue falling below $625M would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±8.07%

Historical Avg

±0.8%

Pricing rich

The options market is pricing in a significant move, suggesting that traders anticipate volatility around the earnings announcement.

Options are pricing ±7.8% while WTS has averaged ±0.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

24.5%

Calls (61K)P/C Ratio: 0.18Puts (11K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Watts Water beats expectations, history suggests the stock could rise by about 0.56%, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further guidance.

Miss

A miss could lead to a decline, with historical patterns suggesting an average drop of around 0.96%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches that could drive sales.
2Insights into customer demand trends in the water management sector.
3Management's outlook on supply chain issues and their impact on operations.
4Comments on competitive pressures and market share.
5Guidance for the upcoming quarters based on current market conditions.

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Company Snapshot

Watts Water Technologies, Inc. (WTS) operates in the industrial sector, focusing on water quality and flow control solutions....

Key Metrics to Watch

EPS

Earnings per share is crucial as it reflects the company's profitability and is a key indicator of financial health.

$2.68

Revenue

Revenue figures provide insight into the company's sales performance and market demand for its products.

$636M

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+9.58%

Avg Stock Reaction

+0.38%

Last Quarter Recap

In the last quarter, Watts Water Technologies reported an EPS of $2.62, exceeding estimates by 10.88%. Despite this positive surprise, the stock saw a slight decline the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If the company can leverage its strong product portfolio and capitalize on increasing demand for water solutions, it may exceed revenue expectations and drive stock prices higher.

Bear Case

On the other hand, if economic conditions worsen or if there are supply chain disruptions, the company may struggle to meet revenue targets, leading to a disappointing earnings report.

Key Metrics to Watch

EPS

$2.68

Earnings per share is crucial as it reflects the company's profitability and is a key indicator of financial health.

Revenue

$636M

Revenue figures provide insight into the company's sales performance and market demand for its products.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will the company achieve revenue of at least $636M?

This figure is crucial as it reflects the company's ability to meet market demand and could influence investor sentiment significantly.

What are the management's insights on supply chain stability?

Given the recent global supply chain challenges, any commentary on this topic will be closely watched for its potential impact on future performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for revenue growth driven by increased demand for water management solutions, which could lead to a significant upside.

Supporting Evidence

The company's consistent history of beating EPS estimates suggests strong operational performance.

Options pricing indicates a higher expected move than historical averages, suggesting traders anticipate a significant reaction.

The lack of recent peer reports may indicate a unique positioning for Watts Water compared to its competitors.

Key Risk

If revenue growth comes in below $625M, it could challenge the bullish sentiment surrounding the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on the company's ability to navigate economic challenges while maintaining sales growth.

Bull Confirmed If

Revenue growth exceeding $636M would confirm the bull case.

Bear Confirmed If

Revenue falling below $625M would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±8.07%

Historical Avg

±0.8%

Pricing rich

The options market is pricing in a significant move, suggesting that traders anticipate volatility around the earnings announcement.

Options are pricing ±7.8% while WTS has averaged ±0.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

24.5%

Calls (61K)P/C Ratio: 0.18Puts (11K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Watts Water beats expectations, history suggests the stock could rise by about 0.56%, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further guidance.

Miss

A miss could lead to a decline, with historical patterns suggesting an average drop of around 0.96%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches that could drive sales.
2Insights into customer demand trends in the water management sector.
3Management's outlook on supply chain issues and their impact on operations.
4Comments on competitive pressures and market share.
5Guidance for the upcoming quarters based on current market conditions.