Mueller Water Products, Inc. (NYSE:MWA) shares drop nearly 10% on Friday following the company’s Q3 results, with EPS of $0.19 coming in worse than the Street estimate of $0.20. Revenue was $333.2 million, compared to the Street estimate of $330.31 million.
For the full 2022-year, the company narrowed its estimate for consolidated net sales year-over-year growth to 11-12%.
The company has struggled all of 2022 from operational headwinds, including the COVID disruptions/labor shortages, sector-wide supply chain inefficiencies, inflationary pressures, and unfavorable manufacturing performance. It is now clear that management did not see any “hockey stick” recovery coming in Q4 and saw it necessary to capitulate with a “kitchen sink” guidance cut. The severity of this cut, especially following a modest operating miss, caught much of the market by surprise, resulting in a stock sell-off on Friday.
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