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Pentair (PNR) Hikes Earnings, Sales Growth Guidance for 2021
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Pentair plc (PNR - Free Report) recently hiked its adjusted earnings per share guidance for 2021 to a range of $3.10 to $3.20 from its previous guidance of $2.80 to $2.95. This seems to be backed by the ongoing strong demand in the residential focused businesses. The mid-point of the new range indicates year-over-year growth of 26%. Sales growth for the year is projected at approximately 17% to 19% on a reported basis, higher than the 6-11% growth projected earlier. Segment income guidance is to be up approximately 21% to 25%.
For the second quarter of 2021, the company now expects earnings per share in the range of 75 cents to 80 cents. The mid-point of the guidance indicates year-over-year growth of 31%. The earlier earnings per share guidance for the quarter was 69-74 cents. Pentair expects second-quarter sales to be up approximately 25% to 29% on a reported basis from the prior-year quarter compared with the previous expectation of sales growth of 13% to 16%. The company also updated second-quarter segment income guidance to be up approximately 22 to 30%.
In the last reported quarter, Pentair witnessed a 56% improvement in adjusted earnings per share to 81 cents driven by strong demand in the residential focused businesses. Notably, the company has been witnessing three consecutive quarters of strong double-digit sales growth in its residential facing businesses. The company’s pool business has benefited from increased demand for swimming pools as consumers were forced to stay at home amid the pandemic, which triggered the desire to invest in their backyards. Notably, the pool business witnessed an impressive 50% growth in the first quarter of 2021. Considering that nearly 80% of Consumer Solutions serves residential markets, the ongoing momentum bodes well for the segment. Also, the Industrial & Flow Technologies segment returned to growth for the first time in five quarters aided by strong performance in residential and recovery in commercial and industrial businesses.
Further, the company has been implementing actions to reduce its fixed cost structure in the wake of uncertainty on account of the coronavirus pandemic. Productivity improvement and price hikes implemented to combat higher input costs will continue to aid results.
Meanwhile, Pentair is focused on expanding digital transformation, innovation, technology and brand building. The company has a strong product pipeline for 2021. Within Water Treatment, the company is of the opinion that there are opportunities to rapidly expand its $50 million end-to-end residential services business, and reinforce its position in advanced technology and connected solutions in residential point-of-use solutions. Pentair is well-poised to gain from these investments over the long term.
It is also focused on expanding particularly in the areas of pool and residential and commercial water treatment through acquisitions. In this regard over the past few years, the company acquired Aquion, Inc., Pelican Water Systems, Rocean and assets of Ken’s Beverage, Inc.
Price Performance
Pentair’s stock has gained 13% over the past three months compared with the industry’s growth of 8.3%.
Some other top-ranked stocks in the industrial products sector are Tennant Company (TNC - Free Report) Encore Wire Corporation (WIRE - Free Report) and Arconic Corporation . All of these stocks sport a Zacks Rank #1, at present.
Tennant has an expected earnings growth rate of 49.5% for the current fiscal year. The company’s shares have gained around 1% in the past three months.
Encore Wire has an estimated earnings growth rate of 49.5% for the current fiscal year. Over the past three months, the company’s shares have rallied nearly 14%.
Arconic has a projected earnings growth rate of 447% for the current fiscal year. The stock has appreciated around 24% in the past three months.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Pentair (PNR) Hikes Earnings, Sales Growth Guidance for 2021
Pentair plc (PNR - Free Report) recently hiked its adjusted earnings per share guidance for 2021 to a range of $3.10 to $3.20 from its previous guidance of $2.80 to $2.95. This seems to be backed by the ongoing strong demand in the residential focused businesses. The mid-point of the new range indicates year-over-year growth of 26%. Sales growth for the year is projected at approximately 17% to 19% on a reported basis, higher than the 6-11% growth projected earlier. Segment income guidance is to be up approximately 21% to 25%.
For the second quarter of 2021, the company now expects earnings per share in the range of 75 cents to 80 cents. The mid-point of the guidance indicates year-over-year growth of 31%. The earlier earnings per share guidance for the quarter was 69-74 cents. Pentair expects second-quarter sales to be up approximately 25% to 29% on a reported basis from the prior-year quarter compared with the previous expectation of sales growth of 13% to 16%. The company also updated second-quarter segment income guidance to be up approximately 22 to 30%.
In the last reported quarter, Pentair witnessed a 56% improvement in adjusted earnings per share to 81 cents driven by strong demand in the residential focused businesses. Notably, the company has been witnessing three consecutive quarters of strong double-digit sales growth in its residential facing businesses. The company’s pool business has benefited from increased demand for swimming pools as consumers were forced to stay at home amid the pandemic, which triggered the desire to invest in their backyards. Notably, the pool business witnessed an impressive 50% growth in the first quarter of 2021. Considering that nearly 80% of Consumer Solutions serves residential markets, the ongoing momentum bodes well for the segment. Also, the Industrial & Flow Technologies segment returned to growth for the first time in five quarters aided by strong performance in residential and recovery in commercial and industrial businesses.
Further, the company has been implementing actions to reduce its fixed cost structure in the wake of uncertainty on account of the coronavirus pandemic. Productivity improvement and price hikes implemented to combat higher input costs will continue to aid results.
Meanwhile, Pentair is focused on expanding digital transformation, innovation, technology and brand building. The company has a strong product pipeline for 2021. Within Water Treatment, the company is of the opinion that there are opportunities to rapidly expand its $50 million end-to-end residential services business, and reinforce its position in advanced technology and connected solutions in residential point-of-use solutions. Pentair is well-poised to gain from these investments over the long term.
It is also focused on expanding particularly in the areas of pool and residential and commercial water treatment through acquisitions. In this regard over the past few years, the company acquired Aquion, Inc., Pelican Water Systems, Rocean and assets of Ken’s Beverage, Inc.
Price Performance
Pentair’s stock has gained 13% over the past three months compared with the industry’s growth of 8.3%.
Zacks Rank and Other Stocks to Consider
Pentair currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the industrial products sector are Tennant Company (TNC - Free Report) Encore Wire Corporation (WIRE - Free Report) and Arconic Corporation . All of these stocks sport a Zacks Rank #1, at present.
Tennant has an expected earnings growth rate of 49.5% for the current fiscal year. The company’s shares have gained around 1% in the past three months.
Encore Wire has an estimated earnings growth rate of 49.5% for the current fiscal year. Over the past three months, the company’s shares have rallied nearly 14%.
Arconic has a projected earnings growth rate of 447% for the current fiscal year. The stock has appreciated around 24% in the past three months.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>