Watts Water Technologies (WTS) Q1 FY2024 earnings: revenue $571 million, up 21.0% on the year

Watts Water Technologies Inc. (WTS) reported revenue of $571 million for Q1 FY2024, the quarter ended 31 March 2024, up 21.0% on the same quarter a year earlier. Net income was $73 million, up 12.2% on the year, and diluted earnings per share $2.17. The figures are the company's own, from the 10-Q it filed with the SEC on 9 May 2024.

Revenue$571 millionup 21.0%

Net income$73 millionup 12.2%

Diluted EPS$2.17

QuarterQ1 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	571	548	n/a	n/a
Cost of revenue	303	292	n/a	n/a
Gross profit	268	256	n/a	n/a
Gross margin	46.9%	46.7%	n/a
Research and development	18.5	19.8	n/a	n/a
Selling, general and administrative	170	173	n/a	n/a
Operating income	96.7	78.7	n/a	n/a
Operating margin	16.9%	14.4%	n/a
Interest expense	4.2	3.8	n/a	n/a
Pre-tax income	95.2	77.3	n/a	n/a
Income tax	22.6	21.6	n/a	n/a
Effective tax rate	23.7%	27.9%	n/a
Net income	72.6	55.7	n/a	n/a
Net margin	12.7%	10.2%	n/a
Diluted EPS	$2.17	$1.67	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	45.6	110	n/a	n/a
Capital expenditure	10.1	10.7	n/a	n/a
Free cash flow	35.5	99.2	n/a	n/a
Free cash flow margin	6.2%	18.1%	n/a
Cash from investing	-110	-312	n/a	n/a
Cash from financing	-44.6	183	n/a	n/a
Depreciation and amortisation	13.3	12.5	n/a	n/a
Share-based compensation	4.0	5.7	n/a	n/a
Buybacks	4.0	4.3	n/a	n/a
Dividend per share	$0.36	n/a	n/a	n/a
Diluted shares, weighted	34m	34m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Shareholders' equity	1,552	1,513	n/a	n/a
Debt	284	298	n/a	n/a
Operating lease liabilities	n/a	43.8	n/a	n/a
Finance lease liabilities	n/a	1.2	n/a	n/a
Other liabilities	497	453	n/a	n/a
Total liabilities and equity	2,332	2,309	n/a	n/a
Fixed assets	255	248	n/a	n/a
Goodwill	724	693	n/a	n/a
Intangible assets	251	216	n/a	n/a
Cash and equivalents	237	350	n/a	n/a
Receivables	306	260	n/a	n/a
Inventory	424	399	n/a	n/a
Other assets	136	143	n/a	n/a
Total assets	2,332	2,309	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	504	548	571	597	544	540	558	644	612	625	677	763
Cost of revenue	270	292	303	312	286	288	286	318	313	316	351	389
Gross profit	234	256	268	285	257	253	272	326	298	309	326	374
Gross margin	46%	47%	47%	48%	47%	47%	49%	51%	49%	49%	48%	49%
R&D	15.2	19.8	18.5	17.9	17.6	16.4	16.8	17.4	18.8	20.5	19.2	20.9
SG&A	147	173	170	173	159	163	168	187	185	194	193	214
Operating income	87.1	78.7	96.7	112	93.2	89.0	87.7	135	111	114	133	154
Operating margin	17%	14%	17%	19%	17%	16%	16%	21%	18%	18%	20%	20%
Interest expense	1.2	3.8	4.2	4.1	3.6	2.8	2.7	2.7	2.7	2.7	2.6	2.2
Pre-tax income	88.1	77.3	95.2	110	92.3	89.0	86.9	135	111	113	131	154
Tax rate	25%	28%	24%	25%	25%	24%	15%	25%	26%	26%	24%	23%
Net income	65.8	55.7	72.6	82.0	69.1	67.5	74.0	101	82.2	83.7	99.6	118
Net margin	13%	10%	13%	14%	13%	12%	13%	16%	13%	13%	15%	16%
Diluted EPS	$1.96	$1.67	$2.17	$2.44	$2.06	$2.02	$2.21	$3.01	$2.45	$2.50	$2.97	$3.53
Operating cash flow	100	110	45.6	85.3	90.7	140	55.2	69.7	122	155	17.9	103
Capital expenditure	7.4	10.7	10.1	6.8	6.4	12.0	9.6	10.2	11.5	14.4	11.3	11.3
Free cash flow	93.0	99.2	35.5	78.5	84.3	128	45.6	59.5	111	140	6.6	91.6
Buybacks	4.0	4.3	4.0	4.1	4.9	4.0	3.9	4.0	3.9	4.2	3.8	4.1
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 9 May 2024, accession 0001558370-24-007502: the filing on EDGAR. All of Watts Water Technologies Inc.'s filings: EDGAR company page.

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