Watts Water Technologies, Inc WTS reported third-quarter 2022 adjusted earnings of $1.79 per share, which increased 29% on a year-over-year basis and beat the Zacks Consensus Estimate by 14%.The company’s quarterly net sales rose 7% year over year to $488 million. The top line surpassed the consensus estimate by 2.5%. Organic sales increased 12% year over year.Amid pandemic-induced supply chain woes, double-digit organic growth in the Americas and solid improvement in Asia boosted Watts Water’s third-quarter 2022 results. However, unfavorable forex translations affected sales by $21 million.Watts Water Technologies, Inc. Price, Consensus and EPS Surprise Watts Water Technologies, Inc. price-consensus-eps-surprise-chart | Watts Water Technologies, Inc. QuoteSegment ResultsAmericas: Net sales increased 13% year over year to $350 million. Organic sales also rose 13% on higher pricing across all major product lines. Adjusted operating income was up 380 basis points (bps) year over year to 21.9%, driven by increased price and productivity initiatives, which were partly offset by inflation and higher investments.Europe: Net sales were down 9% year over year to $113 million, including an unfavorable foreign exchange impact of 15%. Organic sales were up 6%, with growth witnessed across all platforms, primarily driven by price actions. Adjusted operating income was down 320 bps year over year to 12.3%, owing to lower volume, inflationary impact and unfavorable forex volatility.Asia-Pacific, Middle East and Africa: Net sales increased 14% to $25 million. Organic sales moved up 22% from growth in New Zealand, China and Australia. The unfavorable foreign exchange impact was 8%. Adjusted operating margin was down 260 bps to 16.5%, affected by lower affiliate volume and inflationary pressure.Other DetailsGross profit increased 12.3% year over year to $217.9 million. Selling, general and administrative expenses increased 5.8% year over year to $135.8 million. Operating income was $80.4 million, up 24.3%.GAAP operating margin was up 230 bps to 16.5%. The adjusted operating margin was 16.8%, up 240 bps.Cash Flow & LiquidityFor nine months ended Sep 25, Watts Water generated $86.3 million of cash from operating activities compared with $134.9 million cash generated in the prior-year quarter.Free cash flow was $67 million, down from $120.2 million reported in the year-ago quarter. The downtick stemmed from the company’s decision to boost inventories in response to a solid demand environment amid protracted supply chain challenges along with higher payments related to restructuring, employee and customer incentives.The company repurchased 29,000 shares for $4 million in the third quarter. For the first nine months of 2022, the company repurchased 463,000 shares worth $65 million.As of Sep 25, 2022, the company had $219.5 million in cash and cash equivalents with $182.4 million of long-term debt compared with the respective figures of $230 million and $202.2 million as of Jun 26.GuidanceFor fourth-quarter 2022, the company expects organic sales growth to be in the range of 5-8%. The adjusted operating margin is estimated to rise between 13.7% and 14.2%, with adjusted margin growth of 30-80 bps. The company expects operating cash flow and free cash flow performance to improve in the fourth quarter of 2022 due to normal seasonality.For full-year 2022, Watts Water expects organic sales growth to be in the range of 11-12% compared with the earlier range of 8-11%. The adjusted operating margin is now estimated to be between 16.2% and 16.4%, with adjusted margin growth between 190 bps and 210 bps. Earlier, the company had guided the adjusted operating margin to be between 15.4% and 15.9%, with adjusted margin growth between 110 bps and 160 bps.Zacks Rank & Stocks to ConsiderWatts Water currently has a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader technology space are Pure Storage PSTG, Blackbaud BLKB and Cadence Design Systems CDNS. All stocks presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, up 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have lost 12.9% in the past year.The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have lost 33.7% in the past year.The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.22 per share, up 2.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%. CDNS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 10.4%. Shares of CDNS have lost 19.2% in the past year. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackbaud, Inc. (BLKB): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report Pure Storage, Inc. (PSTG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research