Analyst cuts Watts Water estimates ahead of final 1Q results
NEW YORK—An analyst slashed estimates on Watts Water Technologies Inc. Tuesday morning ahead of the company's final first-quarter results, as investors await word on what affect slipping demand and rising costs had on performance.
Morgan Joseph analyst Richard S. Paget cut his first-quarter outlook to profit of 35 cents per share on revenue of $344.5 million. He previously expected profit of 61 cents per share on revenue of $359.7 million.
Analysts polled by Thomson Financial expect, on average, first-quarter earnings of 36 cents per share on revenue of $347.3 million.
North Andover, Mass.-based Watts Water makes products to monitor water safety and flow, as well as conservation. It said April 16 that it expects to post earnings between $13 million to $14 million, or between 35 cents and 38 cents per share, on revenue of $344 million.
Final results will be released after Tuesday's closing bell.
Paget currently rates shares "Hold" and does not have a price target.
"We believe headwinds in new residential and commercial construction could continue to hinder growth and margin improvement for at least the next two quarters," Paget said in a note to clients.
Shares fell 4 cents to $27.41 Tuesday morning.
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