Back to top

Image: Bigstock

Pentair (PNR) Wraps Up Acquisition of Pelican Water Systems

Read MoreHide Full Article

Pentair Plc (PNR - Free Report) has completed the previously announced $120-million acquisition of Pelican Water Systems.

Headquartered in DeLand, FL, Pelican Water Systems provides residential whole home water treatment systems. The acquisition strengthens Pentair by providing growth opportunities through innovative products.  Its multi-channel technique increases customers options to meet water treatment needs.

On Jan 7, the company had entered into an agreement to buy Pelican Water Systems. The acquisition is in sync with Pentair’s strategy to expand its water treatment products in the residential home water business. Pelican Water Systems adds new and complementary products and services to Pentair’s portfolio enabling it to meet consumers’ residential water needs.

Shares of Pentair’s have declined 39.5% over the past year compared with the industry’s decline of 6.6%.



In the fourth-quarter earnings call, the company stated that it projects adjusted EPS in the range of $2.50-$2.60 for 2019. The company expects sales to grow roughly 5-6% on a reported basis and 4-5% on a core basis.

The company also provided earnings guidance for first-quarter 2019. It expects adjusted EPS in range of 52-55 cents. Net sales for the quarter are projected to inch up around 0-1% on a reported basis and roughly 4-5% on a core basis from the first-quarter 2018 tally.

Pentair is well positioned to invest backed by strong free cash flow and low debt levels. It continues to introduce products, make acquisitions and investments in sync with its key growth initiatives of advancing pool growth, and accelerating residential and commercial water treatment.

Pentair plc Price and Consensus

 

Zacks Rank and Stocks to Consider

Pentair currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Industrial Products sector are Axon Enterprise, Inc , Alarm.com Holdings, Inc. (ALRM - Free Report) and Ennis, Inc. (EBF - Free Report) , each sporting Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axon has an expected earnings growth rate of 14.5% for 2019. The company’s shares have rallied 97.4% in the past year.

Alarm.com has an expected earnings growth rate of 7.8% for 2019.  The stock has climbed 68.3% in the past year.

Ennis has an expected earnings growth rate of 13.9% for 2019. Its shares have gained 7.6% in the past year.

Is Your Investment Advisor Fumbling Your Financial Future?
 
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pentair plc (PNR) - free report >>

Alarm.com Holdings, Inc. (ALRM) - free report >>

Ennis, Inc. (EBF) - free report >>

Published in