{
  "report_rows": [
    {
      "kpi": "Adjusted EPS",
      "prediction": "BEAT",
      "answer": "pred ~$1.37 vs. cons ~$1.34",
      "confidence": "MEDIUM"
    },
    {
      "kpi": "Net sales",
      "prediction": "BEAT",
      "answer": "pred ~$2.10B vs. cons ~$2.08B",
      "confidence": "MEDIUM"
    },
    {
      "kpi": "Adjusted operating margin",
      "prediction": "IN-LINE",
      "answer": "pred ~19.6% vs. cons ~19.8% (vs 20.1% Q2'25; YoY step-down is expected)",
      "confidence": "MEDIUM"
    }
  ],
  "guide_rows": [
    {
      "kpi": "FY2026 adjusted EPS guide",
      "prediction": "UNCHANGED",
      "answer": "guide ~$4.20 midpoint ($4.10-$4.30) vs. cons ~$4.22 (FY2026); possible modest low-end raise",
      "confidence": "MEDIUM"
    },
    {
      "kpi": "FY2026 adjusted operating margin",
      "prediction": "UNCHANGED",
      "answer": "guide ~17% vs. cons ~17.1% (FY2026)",
      "confidence": "MEDIUM"
    },
    {
      "kpi": "Plumbing organic/local-currency volume",
      "prediction": "BETTER",
      "answer": "guide ~+2% volume vs. cons ~+1% (Q2/H2 2026); durability of Q1 share gains is the swing factor",
      "confidence": "LOW"
    },
    {
      "kpi": "H2 price/cost & commodity (copper>$6/lb, resins) headwind",
      "prediction": "LOWER",
      "answer": "guide net slight gross-margin headwind vs. cons ~neutral (H2 2026)",
      "confidence": "LOW"
    },
    {
      "kpi": "FY2026 buyback/M&A capital return envelope",
      "prediction": "BETTER",
      "answer": "guide >=$800M vs. prior ~$600M (FY2026)",
      "confidence": "MEDIUM"
    }
  ],
  "day1_residual_pct": -1.0,
  "day1_confidence": "LOW",
  "day5_residual_pct": -2.5,
  "day5_path": "FADE",
  "day5_rationale": "Likely a quality beat on sales/EPS with reaffirmed (not raised) FY guide. But Q2 margin steps down off a 20.1% peak and the beat uses up buffer, so the out-period math implies H2 estimate trims as the copper/resin commodity headwind flows through inventory. With the stock up ~27% YTD and near highs (priced for perfection), a reaffirm rather than a raise drives a 'sell-the-news' fade even on decent numbers, unless plumbing volume/share and an R&R inflection surprise clearly to the upside.",
  "day5_confidence": "LOW"
}