Outlooks: After Q2 what HVAC-companies expect?
Including A.O. Smith, Mueller, Trane, Xylem and Watts
Most of the HVAC-companies beat their analyst estimates in the Q2. Mueller’s stock got punished after missing its top and bottom line estimates. Out of the companies covered in this post, it’s the only one guiding for negative sales growth.
Watts Water Technologies, which has the most similar product offering, is guiding for slightly negative to slightly positive sales growth. Both Mueller and FGI Industries, which primarily sells sanitaryware, are citing de-stocking as a key issue for sales. The common denominator here could be that Mueller, Watts and FGI are more dependent on the wholesalers and distributors.
A.O. Smith
75% of revenue from North America.
Mueller Water Products
Trane Technologies
In its detailed guidance Trane is guiding for a whopping 20% increase in EPS.
Xylem
Xylem is in the process of making a large acquisition of Evoqua.
Watts Water Technologies
Watts revised outlook in terms of revenue and margins is better than before, revising the lower end of the range upwards.
