Watts Water Technologies (NYSE: WTS) reported Q2 EPS of $1.48, $0.20 better than the analyst estimate of $1.28. Revenue for the quarter came in at $467 million versus the consensus estimate of $425.42 million.

Chief Executive Officer Robert J. Pagano Jr. commented, “I want to recognize and thank the exemplary performance of the Watts team and especially our associates in supply chain and operations in navigating through the dual challenges of stronger than anticipated market demand as well as unique dynamics challenging the supply chains globally. Although much of this quarter’s performance improvement is related to COVID-19’s impact last year, underlying market conditions, especially in repair and replacement, were stronger than we originally anticipated. Consequently, we delivered a record quarter, with both sales and adjusted operating margin higher than expected across all regions. As we guided, the February weather freeze in the South-Central U.S. continued to benefit us. After another stronger than expected quarter, which included recording restructuring and other charges associated with the successfully completed negotiations to exit one of our French operations, we are again raising our adjusted full year 2021 outlook.”

GUIDANCE:

Now expect consolidated organic revenue growth of 10% to 14% and consolidated adjusted operating margin expansion of 100 to 150 basis points, compared to last year.

For earnings history and earnings-related data on Watts Water Technologies (WTS) click here.