Water management manufacturer Watts Water (NYSE: WTS) will be reporting earnings this Wednesday after market hours. Here’s what to expect.

Watts Water Technologies beat analysts’ revenue expectations by 6.2% last quarter, reporting revenues of $611.7 million, up 12.5% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

Is Watts Water Technologies a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Watts Water Technologies’s revenue to grow 13.1% year on year to $611.1 million, a reversal from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.34 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Watts Water Technologies has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.8% on average.

Looking at Watts Water Technologies’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mueller Water Products delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2%, and Arrow Electronics reported revenues up 20.1%, topping estimates by 6.6%. Mueller Water Products traded up 1.1% following the results while Arrow Electronics was also up 12.4%.

Read our full analysis of Mueller Water Products’s results here and Arrow Electronics’s results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 8.2% on average over the last month. Watts Water Technologies is up 11.1% during the same time and is heading into earnings with an average analyst price target of $301.56 (compared to the current share price of $319.77).

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