Why did Reliance Worldwide (RWC) shares crash today?
RWC -13.37%: Hit hard today after reporting weaker than expected quarterly sales while they talked to tougher and unpredictable conditions ongoing. The plumbing supply business that generates nearly 70% of its revenue from the US saw volumes decline in all regions except Australia. While sales were up +23% YoY and there were no changes to the key assumptions for FY23 outlined in the full year earnings announcement in (other than interest expense & depreciation), it was more the downbeat rhetoric that seemed the issue. That’s somewhat surprising given the stock is down 50% year to date given these concerns. While the market has been shunning weak outlooks, and the momentum in RWC is clearly on the downside, this is a stocks that will do particularly when the worm turns.
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