Zurn Elkay Q2 Sales Surge 10%, Beat Estimates; Guides Above Consensus
ZWS sits 35% above its 52-week low of $37.89.
Summary
Zurn Elkay delivered a strong Q2 with sales of $491M, up 10% and beating the $483M consensus. Adjusted EPS rose to $0.50 from $0.42 a year ago. The company also completed the Intellihot acquisition and repurchased $50M in shares. Management guided Q3 core sales growth of 6-7% and full-year adjusted EBITDA of $503M-$513M, with free cash flow of at least $350M. This follows the Intellihot deal announced on July 20 and the CFO-to-COO promotion in May, reinforcing a pattern of operational momentum. The beat and raise signal demand strength across all product categories and effective price realization. The stock, which closed at $48.77 on July 27, now trades at 26x forward earnings, with a median analyst target of $56.
At the time of this announcement, ZWS was trading at $51.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $8.2B. The 52-week trading range was $37.89 to $53.76. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.