What drove ZWS's consistent earnings surprises in 2024?

Zurn Elkay Water (ZWS) experienced consistent earnings surprises in 2024 due to a combination of factors that contributed to its robust financial performance:

1. **Revenue Growth**: ZWS reported revenues of $370.7 million for the year, marking a 3.9% year-on-year increase. This growth, although slightly below analysts' expectations, reflected a strong market presence and operational efficiency.
2. **Efficiency and Innovation**: The company's focus on energy efficiency and clean water innovation has led to incremental demand for its products. This trend has likely boosted sales and market share in the HVAC and water systems sector.
3. **Cost Management**: ZWS's ability to manage costs effectively despite challenging market conditions is evident in its financial performance. The company's focus on operational efficiency likely contributed to higher profit margins.
4. **Market Position**: ZWS's position as a leader in water management solutions, with claims of saving over 30 billion gallons of water, has likely provided a stable revenue base. The company's market-leading position may have allowed it to capture a larger share of the market and maintain pricing power.
5. **Strategic Initiatives**: ZWS's strategic initiatives, such as share repurchases and dividend increases, reflect confidence in its financial health and may have boosted investor confidence. These moves can also influence financial metrics, such as EPS, positively.

In summary, ZWS's consistent earnings surprises in 2024 can be attributed to its strategic market positioning, operational efficiency, and ability to capitalize on favorable industry trends while managing costs effectively.