Water management manufacturer Watts Water (NYSE:WTS) will be reporting results tomorrow after market hours. Here’s what you need to know.

Watts Water Technologies beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $597.3 million, up 12.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ operating margin estimates.

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

This quarter, analysts are expecting Watts Water Technologies’s revenue to grow 7.4% year on year to $541.5 million, improving from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.99 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Watts Water Technologies has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.

Looking at Watts Water Technologies’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Flowserve delivered year-on-year revenue growth of 3.5%, meeting analysts’ expectations, and Crane reported revenues up 12.7%, in line with consensus estimates.

Read our full analysis of Flowserve’s results here and Crane’s results here.

Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Watts Water Technologies is down 4.8% during the same time and is heading into earnings with an average analyst price target of $194.75 (compared to the current share price of $197.21).

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