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Pentair (PNR) Beats on Q2 Earnings & Sales, Initiates Guidance
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Pentair plc (PNR - Free Report) reported second-quarter 2020 adjusted earnings per share (EPS) of 59 cents, beating the Zacks Consensus Estimate of 48 cents. The bottom-line figure, however, declined from the 69 cents reported in the prior-year quarter.
Including one-time items, earnings came in at 44 cents compared with the prior-year quarter’s 68 cents.
Net sales declined 10.8% year over year to $713 million. The top-line figure, however, surpassed the Zacks Consensus Estimate of $678 million. Excluding the impact of acquisitions, divestitures and currency translation, core sales decreased 10% in the reported quarter.
Cost of sales dropped 8.8% year over year to $468 million. Gross profit in the reported quarter came in at $245 million, down 14.6% from the prior-year quarter. Gross margin came in at 34.4% compared with the year-ago quarter’s 35.9%.
Selling, general and administrative expenses totaled $117 million compared with the prior-year quarter’s $132 million. Research and development expenses declined 19% year over year to $17.3 million. Adjusted segmental operating income fell 19% year over year to $125 million.
Net sales in the Consumer Solutions segment slid 8.2% year over year to $401 million. Operating earnings fell 11% year over year to $97 million.
Net sales in the Industrial and Flow Technologies segment totaled $312 million, down 13.8% from the prior-year quarter. Operating earnings decreased 26% year over year to $44 million.
Financial Update
Pentair had cash and cash equivalents of $90.6 million as of Jun 30, 2020, up from $82.5 million as of Dec 31, 2019. Net cash from operating activities was $429 million during second-quarter 2020 compared with the $356 million reported in the prior-year quarter. The company generated free cash flow of $417 million in the June-end quarter compared with the $343 million witnessed in the year-earlier quarter. The company had long-term debt of $1.01 billion as of Jun 30, 2020, down from $1.02 billion as of Dec 31, 2019. Pentair has a borrowing capacity of $764 million under its credit facility.
Guidance
For the current year, Pentair now expects adjusted EPS between $2.00 and $2.20. The company expects revenues of $2.8 billion.
Price Performance
Pentair’s share have appreciated 35.2% over the past year, outperforming the industry’s growth of 30.1%.
Zacks Rank & Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Lakeland Industries, Inc. (LAKE - Free Report) , IIVI Incorporated and Energous Corporation (WATT - Free Report) . While Lakeland Industries and IIVI Incorporated sport a Zacks Rank #1 (Strong Buy), Energous Corporation carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has a projected earnings growth rate of 418% for fiscal 2020. The company’s shares have appreciated 50.9% in the past three months.
IIVI Incorporated has an estimated earnings growth rate of 29% for the ongoing year. The company’s shares have rallied 46% in the past three months.
Energous has an expected earnings growth rate of 44% for 2020. The stock has soared 252.6% over the past three months.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Pentair (PNR) Beats on Q2 Earnings & Sales, Initiates Guidance
Pentair plc (PNR - Free Report) reported second-quarter 2020 adjusted earnings per share (EPS) of 59 cents, beating the Zacks Consensus Estimate of 48 cents. The bottom-line figure, however, declined from the 69 cents reported in the prior-year quarter.
Including one-time items, earnings came in at 44 cents compared with the prior-year quarter’s 68 cents.
Net sales declined 10.8% year over year to $713 million. The top-line figure, however, surpassed the Zacks Consensus Estimate of $678 million. Excluding the impact of acquisitions, divestitures and currency translation, core sales decreased 10% in the reported quarter.
Cost of sales dropped 8.8% year over year to $468 million. Gross profit in the reported quarter came in at $245 million, down 14.6% from the prior-year quarter. Gross margin came in at 34.4% compared with the year-ago quarter’s 35.9%.
Selling, general and administrative expenses totaled $117 million compared with the prior-year quarter’s $132 million. Research and development expenses declined 19% year over year to $17.3 million. Adjusted segmental operating income fell 19% year over year to $125 million.
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
Segmental Performance
Net sales in the Consumer Solutions segment slid 8.2% year over year to $401 million. Operating earnings fell 11% year over year to $97 million.
Net sales in the Industrial and Flow Technologies segment totaled $312 million, down 13.8% from the prior-year quarter. Operating earnings decreased 26% year over year to $44 million.
Financial Update
Pentair had cash and cash equivalents of $90.6 million as of Jun 30, 2020, up from $82.5 million as of Dec 31, 2019. Net cash from operating activities was $429 million during second-quarter 2020 compared with the $356 million reported in the prior-year quarter. The company generated free cash flow of $417 million in the June-end quarter compared with the $343 million witnessed in the year-earlier quarter. The company had long-term debt of $1.01 billion as of Jun 30, 2020, down from $1.02 billion as of Dec 31, 2019. Pentair has a borrowing capacity of $764 million under its credit facility.
Guidance
For the current year, Pentair now expects adjusted EPS between $2.00 and $2.20. The company expects revenues of $2.8 billion.
Price Performance
Pentair’s share have appreciated 35.2% over the past year, outperforming the industry’s growth of 30.1%.
Zacks Rank & Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Lakeland Industries, Inc. (LAKE - Free Report) , IIVI Incorporated and Energous Corporation (WATT - Free Report) . While Lakeland Industries and IIVI Incorporated sport a Zacks Rank #1 (Strong Buy), Energous Corporation carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has a projected earnings growth rate of 418% for fiscal 2020. The company’s shares have appreciated 50.9% in the past three months.
IIVI Incorporated has an estimated earnings growth rate of 29% for the ongoing year. The company’s shares have rallied 46% in the past three months.
Energous has an expected earnings growth rate of 44% for 2020. The stock has soared 252.6% over the past three months.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>