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Pentair’s revenues and earnings declined year over year in third-quarter 2023. The company beat the Zacks Consensus Estimate for both revenues and earnings. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 9.2%.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $973 million, indicating a decline of 3% from the year-ago reported figure.
The consensus estimate for earnings is pegged at 86 cents per share, suggesting year-over-year growth of 4.9%. The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 60 days.
What the Zacks Model Unveils
Our proven model doesn’t 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 an earnings beat. But that’s not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Pentair has an Earnings ESP of -0.52%.
Zacks Rank: Pentair currently carries a Zacks Rank of 3.
Key Factors to Note
Pentair’s pool business has been bearing the brunt of weak demand and ongoing inventory correction, We, thus, expect volume to fall 5.2% year over year in the fourth quarter. We, however, expect this to be offset by a 0.6% increase in pricing and a 1.6% contribution from acquisitions.
Pentair has been witnessing a tight supply of raw materials, such as metals, resins and electronics, along with rising logistics costs. Also, supply-chain pressures and inflationary costs are likely to have weighed on the quarter’s performance. Gains from the Manitowoc Ice acquisition and benefits from the Transformation program are expected to have helped offset these impacts on its earnings in the quarter.
Segment Projections
The company has been witnessing weak demand in the pool business recently. Reflecting this, we expect the Pool segment’s sales to be $320.6 million, indicating a year-over-year decline of 6.6%. The downside is likely to be caused by the ongoing inventory reduction. The segment’s operating income is expected to fall 12.6% year over year to $87.2 million.
Our model predicts the Water Solutions segment’s net sales to fall 3.2% year over year to $274 million in the quarter. The operating income is expected to increase 46.8% to $65.8 million.
We expect Industrial & Flow Technologies’ revenues to be $377.6 million, indicating an improvement of 0.5% from the prior-year quarter’s reported figure. Our estimate for this segment’s operating profit is $66.4 million, suggesting growth of 1.7% from the year-ago reported figure.
Price Performance
Shares of PNR have gained 41.5% in the past year compared with the industry’s growth of 2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for GGG’s earnings for the fourth quarter is pegged at 79 cents per share. The consensus estimate for the quarterly earnings has remained unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.2%.
Eaton Corporation (ETN - Free Report) , scheduled to release earnings on Jan 30, has an Earnings ESP of +3.80% and sports a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for ETN’s fourth-quarter earnings is pegged at 95 cents per share. Earnings estimates have moved up 2% in the past 60 days. It has an average trailing four-quarter earnings surprise of 14%.
Caterpillar (CAT - Free Report) , scheduled to release earnings on Feb 5, has an Earnings ESP of +2.02%. CAT currently carries a Zacks Rank of 3.
The consensus estimate for CAT’s earnings for the fourth quarter is pegged at $4.76 per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 16.6%.
Image: Bigstock
Pentair (PNR) to Report Q4 Earnings: What's in the Cards?
Pentair plc (PNR - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 30, before the opening bell.
Q3 Results
Pentair’s revenues and earnings declined year over year in third-quarter 2023. The company beat the Zacks Consensus Estimate for both revenues and earnings. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 9.2%.
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 $973 million, indicating a decline of 3% from the year-ago reported figure.
The consensus estimate for earnings is pegged at 86 cents per share, suggesting year-over-year growth of 4.9%. The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 60 days.
What the Zacks Model Unveils
Our proven model doesn’t 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 an earnings beat. But that’s not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Pentair has an Earnings ESP of -0.52%.
Zacks Rank: Pentair currently carries a Zacks Rank of 3.
Key Factors to Note
Pentair’s pool business has been bearing the brunt of weak demand and ongoing inventory correction, We, thus, expect volume to fall 5.2% year over year in the fourth quarter. We, however, expect this to be offset by a 0.6% increase in pricing and a 1.6% contribution from acquisitions.
Pentair has been witnessing a tight supply of raw materials, such as metals, resins and electronics, along with rising logistics costs. Also, supply-chain pressures and inflationary costs are likely to have weighed on the quarter’s performance. Gains from the Manitowoc Ice acquisition and benefits from the Transformation program are expected to have helped offset these impacts on its earnings in the quarter.
Segment Projections
The company has been witnessing weak demand in the pool business recently. Reflecting this, we expect the Pool segment’s sales to be $320.6 million, indicating a year-over-year decline of 6.6%. The downside is likely to be caused by the ongoing inventory reduction. The segment’s operating income is expected to fall 12.6% year over year to $87.2 million.
Our model predicts the Water Solutions segment’s net sales to fall 3.2% year over year to $274 million in the quarter. The operating income is expected to increase 46.8% to $65.8 million.
We expect Industrial & Flow Technologies’ revenues to be $377.6 million, indicating an improvement of 0.5% from the prior-year quarter’s reported figure. Our estimate for this segment’s operating profit is $66.4 million, suggesting growth of 1.7% from the year-ago reported figure.
Price Performance
Shares of PNR have gained 41.5% in the past year compared with the industry’s growth of 2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Graco (GGG - Free Report) , expected to release earnings on Jan 29, has an Earnings ESP of +4.87% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GGG’s earnings for the fourth quarter is pegged at 79 cents per share. The consensus estimate for the quarterly earnings has remained unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.2%.
Eaton Corporation (ETN - Free Report) , scheduled to release earnings on Jan 30, has an Earnings ESP of +3.80% and sports a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for ETN’s fourth-quarter earnings is pegged at 95 cents per share. Earnings estimates have moved up 2% in the past 60 days. It has an average trailing four-quarter earnings surprise of 14%.
Caterpillar (CAT - Free Report) , scheduled to release earnings on Feb 5, has an Earnings ESP of +2.02%. CAT currently carries a Zacks Rank of 3.
The consensus estimate for CAT’s earnings for the fourth quarter is pegged at $4.76 per share. Earnings estimates have been unchanged in the past 60 days. It has an average trailing four-quarter earnings surprise of 16.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.