Equity Profile

ZWS

Zurn Elkay Water Solutions Corporation

IndustrialsBuilding Products$7.9B

Jul28Tue

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Zurn Elkay Water Solutions Corporation, operating in the industrials sector, focuses on providing innovative water solutions for buildings. Their products are essential for plumbing, drainage, and water conservation, making them relevant in today's sustainability-focused market.

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

N/A

Revenue Growth

Revenue growth indicates the company's ability to expand its market share and attract new customers, which is crucial for long-term success.

N/A

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

ZWS Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+9.18%

Avg Stock Reaction

+0.52%

Last Quarter Recap

In Q1 2026, Zurn Elkay reported an EPS of $0.41, exceeding expectations by 12%. The stock reacted positively, gaining 0.33% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are cautiously optimistic ahead of the earnings report, given the company's strong track record of beating EPS estimates in recent quarters.

Bull Case

If Zurn Elkay continues to show strong EPS growth and revenue expansion, it could signal robust demand for its products, driving the stock higher.

Bear Case

On the other hand, any signs of slowing growth or increased costs could lead to a negative reaction from investors, especially if the company fails to meet expectations.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

Given the company's history of beating EPS estimates, this figure will be crucial in determining market sentiment post-announcement.

What are the revenue growth expectations for this quarter?

Revenue growth will indicate how well Zurn Elkay is performing in a competitive market, impacting investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may underestimate Zurn Elkay's ability to capitalize on increasing demand for water-efficient solutions, which could lead to stronger-than-expected revenue growth.

Supporting Evidence

Zurn Elkay has consistently beaten EPS estimates, indicating strong operational performance.

The options market is pricing in a significant move, suggesting that traders expect volatility and potential upside.

Historical patterns show that similar setups have often resulted in positive stock movement.

Key Risk

If revenue growth exceeds expectations, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will be closely watched as it could signal the company's ability to sustain growth in a challenging economic environment.

Bull Confirmed If

An EPS of $0.45 or higher would confirm strong operational performance and growth.

Bear Confirmed If

An EPS below $0.35 would raise concerns about profitability and market demand.

Pre-Earnings Positioning

Options Market

Implied Move

±14.19%

Historical Avg

±1.0%

Pricing rich

The options market is pricing in a significant potential move, indicating that traders expect volatility around the earnings announcement.

Options are pricing ±14.2% while ZWS has averaged ±1.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

38.7%

Calls (100)P/C Ratio: 1.00Puts (0)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 6 of 24 (25%)

This setup has occurred 30 times across Industrials in the last 2 years. 18 of 24 (75%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.7%, with a raw directional average of +1.7% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zurn Elkay beats expectations, history suggests the stock could rise by about 0.52% on the following day, confirming positive momentum.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience muted movement as investors digest the information.

Miss

Should the company miss expectations, the stock could drop, potentially reflecting the average 1-day move of -1.27% based on past performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches or innovations in water solutions.
2Management's commentary on cost management and supply chain challenges.
3Insights into customer demand trends and market share growth.
4Any guidance on future revenue expectations or strategic initiatives.
5Discussion on sustainability efforts and their impact on sales.

See the full picture

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Company Snapshot

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well the company is managing costs and generating income.

N/A

Revenue Growth

Revenue growth indicates the company's ability to expand its market share and attract new customers, which is crucial for long-term success.

N/A

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

ZWS Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+9.18%

Avg Stock Reaction

+0.52%

Last Quarter Recap

In Q1 2026, Zurn Elkay reported an EPS of $0.41, exceeding expectations by 12%. The stock reacted positively, gaining 0.33% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are cautiously optimistic ahead of the earnings report, given the company's strong track record of beating EPS estimates in recent quarters.

Bull Case

If Zurn Elkay continues to show strong EPS growth and revenue expansion, it could signal robust demand for its products, driving the stock higher.

Bear Case

On the other hand, any signs of slowing growth or increased costs could lead to a negative reaction from investors, especially if the company fails to meet expectations.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

Given the company's history of beating EPS estimates, this figure will be crucial in determining market sentiment post-announcement.

What are the revenue growth expectations for this quarter?

Revenue growth will indicate how well Zurn Elkay is performing in a competitive market, impacting investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may underestimate Zurn Elkay's ability to capitalize on increasing demand for water-efficient solutions, which could lead to stronger-than-expected revenue growth.

Supporting Evidence

Zurn Elkay has consistently beaten EPS estimates, indicating strong operational performance.

The options market is pricing in a significant move, suggesting that traders expect volatility and potential upside.

Historical patterns show that similar setups have often resulted in positive stock movement.

Key Risk

If revenue growth exceeds expectations, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will be closely watched as it could signal the company's ability to sustain growth in a challenging economic environment.

Bull Confirmed If

An EPS of $0.45 or higher would confirm strong operational performance and growth.

Bear Confirmed If

An EPS below $0.35 would raise concerns about profitability and market demand.

Pre-Earnings Positioning

Options Market

Implied Move

±14.19%

Historical Avg

±1.0%

Pricing rich

The options market is pricing in a significant potential move, indicating that traders expect volatility around the earnings announcement.

Options are pricing ±14.2% while ZWS has averaged ±1.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

38.7%

Calls (100)P/C Ratio: 1.00Puts (0)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 6 of 24 (25%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zurn Elkay beats expectations, history suggests the stock could rise by about 0.52% on the following day, confirming positive momentum.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience muted movement as investors digest the information.

Miss

Should the company miss expectations, the stock could drop, potentially reflecting the average 1-day move of -1.27% based on past performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches or innovations in water solutions.
2Management's commentary on cost management and supply chain challenges.
3Insights into customer demand trends and market share growth.
4Any guidance on future revenue expectations or strategic initiatives.
5Discussion on sustainability efforts and their impact on sales.