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Pentair (PNR) Q1 Earnings & Sales Beat Estimates, Up Y/Y
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Pentair plc (PNR - Free Report) reported first-quarter 2022 adjusted earnings per share of 85 cents, beating the Zacks Consensus Estimate of 81 cents. The bottom-line figure surpassed the company’s guidance of 80 cents. It improved 5% from the 81 cents reported in the prior-year quarter on strong demand, particularly in the residential business and ongoing improvement in commercial and industrial businesses.
Including one-time items, earnings per share was 70 cents compared with the prior-year quarter’s 77 cents.
Net sales improved 15% year over year to $1 billion and outpaced the Zacks Consensus Estimate of $954 million. Excluding the impact of acquisitions, divestitures and currency translation, core sales grew 12% in the reported quarter.
The cost of sales advanced 21% year over year to $667 million. The gross profit in the reported quarter amounted to $332 million, up 5% from the prior-year quarter. The gross margin was 33.2% compared with the year-ago quarter’s 36.4%.
Selling, general and administrative expenses totaled $164 million, up 20% from the prior-year quarter’s $137 million. Research and development expenses increased 4% year over year to $22 million.
Operating income in the quarter was $146 million, down 7% year on year. The adjusted segmental operating income increased 5% year over year to $172 million. The segment margin came in at 17.2% in the reported quarter, a 160 basis-point contraction from the year-ago quarter’s 19%.
Segmental Performance
Net sales in the Consumer Solutions segment moved up 23% year over year to $641 million. The segment’s operating earnings increased 6% year over year to $138 million.
Net sales in the Industrial and Flow Technologies segment totaled $358 million, up 4% from the prior-year quarter. Operating earnings for the segment rose 4% year over year to $52 million.
Financial Update
Pentair had cash and cash equivalents of $102 million as of Dec 31, 2021, compared with $94.5 million as of Dec 31, 2021. Net cash flow used in operating activities was around $131 million during the first quarter compared with utilization of $19 million in the prior-year period. The company had long-term debt of $1.09 billion as of Dec 31, 2021, up from $894 million as of Dec 31, 2021.
Guidance
Pentair affirmed adjusted earnings per share guidance for 2022 at $3.70-$3.80. The mid-point of the range indicates year-over-year growth of 10%. Sales growth projection for the year has been updated to 9-11% on a reported basis.
For the second quarter of 2022, the company expects adjusted earnings per share in the range of 92 cents to $1.01. Pentair anticipates the current-quarter sales to be up approximately 11% to 13% on a reported basis from the prior-year period.
Price Performance
Pentair’s stock has fallen 15.4% over the past year compared with the industry’s decline of 17.6%.
Packaging Corp has an expected earnings growth rate of 12.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 9.5% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 22.7%, on average. PKG’s shares have gained 18.6% in the past year.
Greif has an estimated earnings growth rate of around 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%.
GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. GEF’s shares have gained 10.9% in a year’s time.
Sonoco has a projected earnings growth rate of 39.7% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 6.9% in the past 60 days.
SON delivered a trailing four-quarter earnings surprise of 1.74%, on average. Sonoco has moved up 2% in the past year.
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Pentair (PNR) Q1 Earnings & Sales Beat Estimates, Up Y/Y
Pentair plc (PNR - Free Report) reported first-quarter 2022 adjusted earnings per share of 85 cents, beating the Zacks Consensus Estimate of 81 cents. The bottom-line figure surpassed the company’s guidance of 80 cents. It improved 5% from the 81 cents reported in the prior-year quarter on strong demand, particularly in the residential business and ongoing improvement in commercial and industrial businesses.
Including one-time items, earnings per share was 70 cents compared with the prior-year quarter’s 77 cents.
Net sales improved 15% year over year to $1 billion and outpaced the Zacks Consensus Estimate of $954 million. Excluding the impact of acquisitions, divestitures and currency translation, core sales grew 12% in the reported quarter.
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
The cost of sales advanced 21% year over year to $667 million. The gross profit in the reported quarter amounted to $332 million, up 5% from the prior-year quarter. The gross margin was 33.2% compared with the year-ago quarter’s 36.4%.
Selling, general and administrative expenses totaled $164 million, up 20% from the prior-year quarter’s $137 million. Research and development expenses increased 4% year over year to $22 million.
Operating income in the quarter was $146 million, down 7% year on year. The adjusted segmental operating income increased 5% year over year to $172 million. The segment margin came in at 17.2% in the reported quarter, a 160 basis-point contraction from the year-ago quarter’s 19%.
Segmental Performance
Net sales in the Consumer Solutions segment moved up 23% year over year to $641 million. The segment’s operating earnings increased 6% year over year to $138 million.
Net sales in the Industrial and Flow Technologies segment totaled $358 million, up 4% from the prior-year quarter. Operating earnings for the segment rose 4% year over year to $52 million.
Financial Update
Pentair had cash and cash equivalents of $102 million as of Dec 31, 2021, compared with $94.5 million as of Dec 31, 2021. Net cash flow used in operating activities was around $131 million during the first quarter compared with utilization of $19 million in the prior-year period. The company had long-term debt of $1.09 billion as of Dec 31, 2021, up from $894 million as of Dec 31, 2021.
Guidance
Pentair affirmed adjusted earnings per share guidance for 2022 at $3.70-$3.80. The mid-point of the range indicates year-over-year growth of 10%. Sales growth projection for the year has been updated to 9-11% on a reported basis.
For the second quarter of 2022, the company expects adjusted earnings per share in the range of 92 cents to $1.01. Pentair anticipates the current-quarter sales to be up approximately 11% to 13% on a reported basis from the prior-year period.
Price Performance
Pentair’s stock has fallen 15.4% over the past year compared with the industry’s decline of 17.6%.
Zacks Rank and Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Packaging Corporation of America (PKG - Free Report) , Greif Inc. (GEF - Free Report) and Sonoco Products Company (SON - Free Report) . While Packaging Corp sports a Zacks Rank #1 (Strong Buy), Greif and Sonoco carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Packaging Corp has an expected earnings growth rate of 12.6% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 9.5% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 22.7%, on average. PKG’s shares have gained 18.6% in the past year.
Greif has an estimated earnings growth rate of around 16% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4.2%.
GEF pulled off a trailing four-quarter earnings surprise of 14.7%, on average. GEF’s shares have gained 10.9% in a year’s time.
Sonoco has a projected earnings growth rate of 39.7% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 6.9% in the past 60 days.
SON delivered a trailing four-quarter earnings surprise of 1.74%, on average. Sonoco has moved up 2% in the past year.