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Pentair’s revenues and earnings improved in third-quarter 2021, primarily driven by strong demand in the residential focused businesses. The company beat the Zacks Consensus Estimate on both counts.
The company has an impressive earnings surprise history. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 13.7%.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $950 million, indicating year-over-year growth of 19.4%. The same for earnings stands at 85 cents, suggesting year-over-year improvement of 21%. The Zacks Consensus Estimate for the quarter’s earnings has gone down 1% over the past 30 days.
What the Zacks Model Unveils
The proven Zacks model does not conclusively predict an earnings beat for Pentair this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. This is not the case here as you will see. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Pentair is -3.19%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Pentair currently carries a Zacks Rank #4 (Sell).
Key Factors to Note
Pentair has been witnessing solid improvement in its residential facing businesses over the past few quarters as consumers prefer to stay at home due to the concerns regarding the emergence of different variants of the COVID-19 virus. Thus, they are spending to enhance their at-home quality of life by investing in pools. Apart from pool construction, demand for pool maintenance remains strong. Considering that nearly 80% of the Consumer Solutions segment serves residential markets, the robust demand is likely to get reflected in the fourth-quarter results. The balance of the segment’s revenues is generated from the commercial business, which has picked up lately as restaurant and hospitality industries have reopened. The company’s efforts to expand in the areas of pool and residential and commercial water treatment through acquisitions, introduction of water-treatment solutions, investments and innovations are likely to have contributed to the Consumer Solutions segment’s performance in the quarter to be reported.
The Zacks Consensus Estimate for the Consumer Solutions segment’s revenues is currently pegged at $601 million, suggesting an improvement of 25% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter stands at $148 million, indicating growth of 19% year over year.
Activity in commercial and industrial businesses has picked up lately. This, in turn, is likely to have contributed to the Industrial & Flow Technologies segment’s fourth-quarter performance. The Zacks Consensus Estimate for the Industrial & Flow Technologies segment’s revenues stands at $342 million, indicating an improvement of 9% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $45 million, suggesting growth of 36% from $33 million reported a year ago.
Pentair has been witnessing inflationary increases due to high demand and tight supply of raw materials such as metals, resins and electronics, and rising logistics costs. While it has been undertaking pricing actions and focusing on productivity improvements that may have offset these increases, supply chain pressures and inflationary increases are likely to have weighed on fourth-quarter performance.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 11.3% over the past year compared with the industry’s rally of 17.8%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +1.75% and a Zacks Rank of 2. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 28.1%.
Sealed Air’s shares have gained 51% over the past year. SEE’s earnings topped the consensus mark in three of the trailing four quarters and missed once, the average surprise being 6.5%.
Ingersoll Rand (IR - Free Report) has an Earnings ESP of +7.44% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 suggests year-over-year growth of 15%.
Shares of Ingersoll Rand have gained 31% over the past year. IR earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 19.8%.
Crown Holdings (CCK - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 2.7%.
Shares of Crown Holdings have gained 18% over the past year. CCK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.4%.
Image: Bigstock
Pentair (PNR) to Report Q4 Earnings: What's in the Offing?
Pentair plc (PNR - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 1, before the opening bell.
Q3 Results & Surprise History
Pentair’s revenues and earnings improved in third-quarter 2021, primarily driven by strong demand in the residential focused businesses. The company beat the Zacks Consensus Estimate on both counts.
The company has an impressive earnings surprise history. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 13.7%.
Pentair plc Price and EPS Surprise
Pentair plc price-eps-surprise | Pentair plc Quote
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $950 million, indicating year-over-year growth of 19.4%. The same for earnings stands at 85 cents, suggesting year-over-year improvement of 21%. The Zacks Consensus Estimate for the quarter’s earnings has gone down 1% over the past 30 days.
What the Zacks Model Unveils
The proven Zacks model does not conclusively predict an earnings beat for Pentair this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. This is not the case here as you will see. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Pentair is -3.19%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Pentair currently carries a Zacks Rank #4 (Sell).
Key Factors to Note
Pentair has been witnessing solid improvement in its residential facing businesses over the past few quarters as consumers prefer to stay at home due to the concerns regarding the emergence of different variants of the COVID-19 virus. Thus, they are spending to enhance their at-home quality of life by investing in pools. Apart from pool construction, demand for pool maintenance remains strong. Considering that nearly 80% of the Consumer Solutions segment serves residential markets, the robust demand is likely to get reflected in the fourth-quarter results. The balance of the segment’s revenues is generated from the commercial business, which has picked up lately as restaurant and hospitality industries have reopened. The company’s efforts to expand in the areas of pool and residential and commercial water treatment through acquisitions, introduction of water-treatment solutions, investments and innovations are likely to have contributed to the Consumer Solutions segment’s performance in the quarter to be reported.
The Zacks Consensus Estimate for the Consumer Solutions segment’s revenues is currently pegged at $601 million, suggesting an improvement of 25% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter stands at $148 million, indicating growth of 19% year over year.
Activity in commercial and industrial businesses has picked up lately. This, in turn, is likely to have contributed to the Industrial & Flow Technologies segment’s fourth-quarter performance. The Zacks Consensus Estimate for the Industrial & Flow Technologies segment’s revenues stands at $342 million, indicating an improvement of 9% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $45 million, suggesting growth of 36% from $33 million reported a year ago.
Pentair has been witnessing inflationary increases due to high demand and tight supply of raw materials such as metals, resins and electronics, and rising logistics costs. While it has been undertaking pricing actions and focusing on productivity improvements that may have offset these increases, supply chain pressures and inflationary increases are likely to have weighed on fourth-quarter performance.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 11.3% over the past year compared with the industry’s rally of 17.8%.Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +1.75% and a Zacks Rank of 2. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 28.1%.
Sealed Air’s shares have gained 51% over the past year. SEE’s earnings topped the consensus mark in three of the trailing four quarters and missed once, the average surprise being 6.5%.
Ingersoll Rand (IR - Free Report) has an Earnings ESP of +7.44% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 suggests year-over-year growth of 15%.
Shares of Ingersoll Rand have gained 31% over the past year. IR earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 19.8%.
Crown Holdings (CCK - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s earnings for the fourth quarter of 2021 indicates year-over-year growth of 2.7%.
Shares of Crown Holdings have gained 18% over the past year. CCK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar