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Pentair plc (PNR - Free Report) has reported first-quarter 2023 adjusted earnings per share of 91 cents, beating the Zacks Consensus Estimate of 78 cents. The bottom-line figure surpassed the company’s guidance of 76-78 cents. It improved 7% from the 85 cents reported in the prior-year quarter on solid transformation initiatives.
Effective Jan 1, 2023, the company split its Consumer Solutions segment into two segments — Pool and Water Solutions. Industrial & Flow Technologies remained the same.
Including one-time items, earnings per share was 78 cents compared with the prior-year quarter’s 71 cents.
Net sales improved 2.9% year over year to $1 billion and outpaced the Zacks Consensus Estimate of $995.1 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales fell 3% in the reported quarter.
The cost of sales declined 3.1% year over year to $647 million. The gross profit in the reported quarter amounted to $382 million, up 14.9% from the prior-year quarter. The gross margin was 37.1% compared with the year-ago quarter’s 33.2%.
Selling, general and administrative expenses totaled $173 million, up 5.6% from the prior-year quarter’s $164 million. Research and development expenses increased 11.7% year over year to $25 million.
Operating income in the quarter was $184 million, up 25.9% year over year. The adjusted segmental operating income increased 22.6% year over year to $211 million. The segmental margin was 20.5% in the reported quarter, up from the year-ago quarter’s 17.2%.
Net sales in the Industrial and Flow Technologies segment totaled $392 million, up 9.4% from the prior-year quarter. Operating earnings for the segment rose 24.5% year over year to $65 million.
Net sales in the Water Solutions segment moved up 32.2% year over year to $272 million. The segment’s operating earnings were $52 million compared with $22 million reported in the year ago quarter.
Net sales in the Pool segment totaled $364 million, down 16.3% from the prior-year quarter. Operating earnings for the segment fell 0.1% year over year to $116.2 million.
Financial Update
Pentair had cash and cash equivalents of $119 million as of Mar 31, 2023, compared with $102 million as of Mar 31, 2022. Net cash flow used in operating activities was around $107 million in the first quarter compared with the utilization of $131 million in the prior-year period. The company had a long-term debt of $2.49 billion as of Mar 31, 2022, up from $2.31 million as of Dec 31, 2022.
Guidance
Pentair expects adjusted earnings per share of $3.60-$3.70 for 2023. Sales growth for the year is expected to be down 2% to flat on a reported basis.
For the second quarter of 2023, the company expects adjusted earnings per share of 94-96 cents. Pentair anticipates current-quarter sales to be down 1% to flat on a reported basis from the prior-year period’s reported figure.
Price Performance
Pentair’s stock has lost 1.1% over the past year compared with the industry’s fall of 18.6%.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.
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Pentair (PNR) Q1 Earnings & Sales Beat Estimates, Rise Y/Y
Pentair plc (PNR - Free Report) has reported first-quarter 2023 adjusted earnings per share of 91 cents, beating the Zacks Consensus Estimate of 78 cents. The bottom-line figure surpassed the company’s guidance of 76-78 cents. It improved 7% from the 85 cents reported in the prior-year quarter on solid transformation initiatives.
Effective Jan 1, 2023, the company split its Consumer Solutions segment into two segments — Pool and Water Solutions. Industrial & Flow Technologies remained the same.
Including one-time items, earnings per share was 78 cents compared with the prior-year quarter’s 71 cents.
Net sales improved 2.9% year over year to $1 billion and outpaced the Zacks Consensus Estimate of $995.1 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales fell 3% in the reported quarter.
The cost of sales declined 3.1% year over year to $647 million. The gross profit in the reported quarter amounted to $382 million, up 14.9% from the prior-year quarter. The gross margin was 37.1% compared with the year-ago quarter’s 33.2%.
Selling, general and administrative expenses totaled $173 million, up 5.6% from the prior-year quarter’s $164 million. Research and development expenses increased 11.7% year over year to $25 million.
Operating income in the quarter was $184 million, up 25.9% year over year. The adjusted segmental operating income increased 22.6% year over year to $211 million. The segmental margin was 20.5% in the reported quarter, up from the year-ago quarter’s 17.2%.
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
Segmental Performance
Net sales in the Industrial and Flow Technologies segment totaled $392 million, up 9.4% from the prior-year quarter. Operating earnings for the segment rose 24.5% year over year to $65 million.
Net sales in the Water Solutions segment moved up 32.2% year over year to $272 million. The segment’s operating earnings were $52 million compared with $22 million reported in the year ago quarter.
Net sales in the Pool segment totaled $364 million, down 16.3% from the prior-year quarter. Operating earnings for the segment fell 0.1% year over year to $116.2 million.
Financial Update
Pentair had cash and cash equivalents of $119 million as of Mar 31, 2023, compared with $102 million as of Mar 31, 2022. Net cash flow used in operating activities was around $107 million in the first quarter compared with the utilization of $131 million in the prior-year period. The company had a long-term debt of $2.49 billion as of Mar 31, 2022, up from $2.31 million as of Dec 31, 2022.
Guidance
Pentair expects adjusted earnings per share of $3.60-$3.70 for 2023. Sales growth for the year is expected to be down 2% to flat on a reported basis.
For the second quarter of 2023, the company expects adjusted earnings per share of 94-96 cents. Pentair anticipates current-quarter sales to be down 1% to flat on a reported basis from the prior-year period’s reported figure.
Price Performance
Pentair’s stock has lost 1.1% over the past year compared with the industry’s fall of 18.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , The Manitowoc Company, Inc. (MTW - Free Report) , and OI Glass Inc. (OI - Free Report) . WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and OI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 17.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 20% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 earnings per share is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 61.6% in the last year.