ZWS - Why Zurn Elkay Water Solutions Stock Tanked in Early Trading Today
Shares of Zurn Elkay Water Solutions (NYSE: ZWS) , a maker of water-related products such as fountains, faucets, and pipes, fell just shy of 16% at the open on Wednesday. The big news was the company's second-quarter earnings release, which hit the market after the close on Tuesday. It wasn't exactly filled with bad news, but investors clearly didn't like the quarterly update.
Second-quarter sales increased 17% year over year; 15 percentage points of that total came from core operations, with the remaining 2 percentage points driven by acquisition activity. Adjusted earnings of $0.32 per share were well above the year-ago tally of $0.22.
Analysts had been calling for adjusted earnings per share of around $0.29, so the company beat on the bottom line. It also announced that the board, as planned and previously announced, was increasing the quarterly dividend from $0.03 per share to $0.07. You might have expected all of this to result in a positive mood among investors.
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Why Zurn Elkay Water Solutions Stock Tanked in Early Trading Today