Global Water Intelligence (GWI)

Mueller Water raises growth outlook after strong Q2


Source: Global Water Intelligence (GWI)

Mueller Water shares closed up 11.2% earlier this week on the back of a better than expected set of second-quarter results, which showed net sales up 16.8% to $233.2 million, and operating income up 34.7% to $31.8 million.

At the same time, management felt sufficiently confident to raise the full-year net sales growth outlook to 7-9%, up significantly from the previous range of 4-7% given as recently as February this year.

The company was able to partially offset a rapid rise in brass and scrap metal costs through higher product pricing and productivity gains, and foresees residential construction growth in the mid- to high single digits and municipal spending growth in the low to mid-single digits.

Despite the lack of progress towards profitability in the Technologies division, the stock remains buoyant.

“[O]ur positive investment thesis remains unchanged. MWA shares represent tremendous value in our opinion,” wrote Janney analyst Michael Gaugler.

Customer comments

No comments were found for Mueller Water raises growth outlook after strong Q2. Be the first to comment!