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 (ZWS) operates in the industrials sector, focusing on building products related to water solutions. Their products are essential for plumbing and water management, making them relevant in discussions about sustainability and infrastructure development.

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors will closely watch.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and expand its market presence, 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 estimates by 12%. The stock saw a slight increase of 0.33% the following day, indicating a positive market reaction.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for ZWS are mixed, with investors hoping for continued EPS growth but uncertain about revenue performance. The lack of analyst estimates adds to the uncertainty.

Bull Case

If ZWS can maintain its trend of beating EPS estimates, it could signal strong operational efficiency and market demand, leading to a positive stock reaction.

Bear Case

Conversely, if revenue growth does not meet expectations or if there are signs of market weakness, it could lead to a negative reaction from investors.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

Given ZWS's strong track record of beating EPS estimates, this figure will be critical in determining market sentiment.

How does management view revenue growth in the current market environment?

Insights into revenue growth will help investors gauge the company's performance and market demand, which are crucial for future projections.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating ZWS's ability to leverage its recent operational improvements, which could lead to better-than-expected earnings.

Supporting Evidence

ZWS has consistently beaten EPS estimates, indicating strong management performance.

The options market is pricing a larger move than historical averages, suggesting that investors expect significant news.

The lack of analyst estimates could mean that the market is not fully accounting for potential upside.

Key Risk

If ZWS reports an EPS significantly above $0.41, it could shift market sentiment dramatically.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether ZWS can sustain its earnings momentum in a potentially challenging market.

Bull Confirmed If

An EPS of $0.45 or higher would confirm the bull case, indicating strong operational performance.

Bear Confirmed If

An EPS below $0.35 would confirm the bear case, suggesting potential issues with profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±14.19%

Historical Avg

±1.0%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings report.

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 ZWS beats expectations, history suggests a positive stock reaction of around +0.52%, confirming the company's operational strength.

In-Line / Cautious

If results are in line but management's commentary is cautious, the stock may experience muted movement as investors reassess future growth.

Miss

A miss could lead to a decline, with historical patterns suggesting a potential drop of around -1.27%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies and their impact on margins.
2Insights into demand trends for water solutions in both residential and commercial sectors.
3Management's outlook on supply chain challenges and their resolution.
4Details on any new product launches or innovations in the pipeline.
5Comments on competitive pressures and how ZWS plans to address them.

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Company Snapshot

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors will closely watch.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and expand its market presence, 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 estimates by 12%. The stock saw a slight increase of 0.33% the following day, indicating a positive market reaction.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for ZWS are mixed, with investors hoping for continued EPS growth but uncertain about revenue performance. The lack of analyst estimates adds to the uncertainty.

Bull Case

If ZWS can maintain its trend of beating EPS estimates, it could signal strong operational efficiency and market demand, leading to a positive stock reaction.

Bear Case

Conversely, if revenue growth does not meet expectations or if there are signs of market weakness, it could lead to a negative reaction from investors.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

Given ZWS's strong track record of beating EPS estimates, this figure will be critical in determining market sentiment.

How does management view revenue growth in the current market environment?

Insights into revenue growth will help investors gauge the company's performance and market demand, which are crucial for future projections.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating ZWS's ability to leverage its recent operational improvements, which could lead to better-than-expected earnings.

Supporting Evidence

ZWS has consistently beaten EPS estimates, indicating strong management performance.

The options market is pricing a larger move than historical averages, suggesting that investors expect significant news.

The lack of analyst estimates could mean that the market is not fully accounting for potential upside.

Key Risk

If ZWS reports an EPS significantly above $0.41, it could shift market sentiment dramatically.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether ZWS can sustain its earnings momentum in a potentially challenging market.

Bull Confirmed If

An EPS of $0.45 or higher would confirm the bull case, indicating strong operational performance.

Bear Confirmed If

An EPS below $0.35 would confirm the bear case, suggesting potential issues with profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±14.19%

Historical Avg

±1.0%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings report.

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 ZWS beats expectations, history suggests a positive stock reaction of around +0.52%, confirming the company's operational strength.

In-Line / Cautious

If results are in line but management's commentary is cautious, the stock may experience muted movement as investors reassess future growth.

Miss

A miss could lead to a decline, with historical patterns suggesting a potential drop of around -1.27%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management strategies and their impact on margins.
2Insights into demand trends for water solutions in both residential and commercial sectors.
3Management's outlook on supply chain challenges and their resolution.
4Details on any new product launches or innovations in the pipeline.
5Comments on competitive pressures and how ZWS plans to address them.