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Pentair (PNR) Beats on Q2 Earnings & Sales, Trims '16 View

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Pentair Plc (PNR - Free Report) is a global water, fluid, thermal management, and equipment protection partner with industry leading products, services, and solutions.

Pentair will continue to benefit from the optimism regarding Residential & Commercial businesses and stabilization in Industrial businesses. The company is aggressively managing its cost structure. It is also investing in its high-performing Technical Solutions and Water Quality Systems segments in which it sees strategic organic and inorganic growth opportunities. However, Pentair had cautioned that the challenges currently faced by its Valve & Control segment that are likely to persist in the near term. Further, low oil prices, unfavorable foreign exchange and weak agricultural market will continue to weigh on Pentair’s results.

Investors have thus been eagerly waiting to see how the company fares in its second quarter 2016 earnings results. Let’s have a quick look at the earnings release of this Schaffhausen, Switzerland based diversified industrial manufacturing company with a market capitalization of $11.5 billion.

Estimate Trend & Surprise History: You should note that the earnings estimate revisions for Pentair depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days and currently stands at $1.10 for the second quarter.

As regards earnings surprise, Pentair has outpaced the Zacks Consensus Estimate in the past 4 quarters, with an average beat of 4.61%.

PENTAIR PLC Price and EPS Surprise

PENTAIR PLC Price and EPS Surprise | PENTAIR PLC Quote

Earnings: Pentair’s earnings beat the Zacks Consensus Estimate by a penny. Analysts polled by Zacks were expecting earnings per share (EPS) of $1.10 and the company reported EPS of $1.11. Earnings came at the higher end of the management guidance of EPS range of $1.08–$1.11.

Revenue: Pentair also beat on revenues. It reported second quarter 2016 revenues of $1.733 billion, ahead of the Zacks Consensus Estimate of $1.719 billion. Revenues came in line with the management guidance of $1.7 billion.

Key Developments to Note: Pentair lowered the upper end of its 2016 EPS guidance range to $4.05 to $4.20 from the prior band of $4.05 to $4.25. While the company reaffirmed its fiscal 2016 sales projection of $6.7 billion, which is up approximately 4% year over year on a reported basis but down 1% on a core basis.

Pentair also initiated its third quarter 2016 guidance. The company expects EPS in the range of $1.02 - $1.08 on the back of revenues of approximately $1.66 billion.

Zacks Rank: Currently, Pentair carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.

Check back later for our full write up on this Pentair earnings report later!

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