We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pentair (PNR) Up 6.3% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Pentair plc (PNR - Free Report) . Shares have added about 6.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pentair due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Pentair Beats Q3 Earnings & Sales Estimates, Raises '24 Outlook
Pentair has reported third-quarter 2024 adjusted earnings per share (EPS) of $1.09, beating the Zacks Consensus Estimate of $1.07. The bottom line also surpassed the company’s guidance of $1.06-$1.08 and improved 14% from the 94 cents reported in the prior year.
Including one-time items, EPS was 84 cents compared with the prior-year quarter’s 79 cents.
Net sales declined 1.5% year over year to $993 million in the quarter under review. However, the top line surpassed the Zacks Consensus Estimate of $990 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1% in the quarter.
The cost of sales declined 5.8% year over year to $600 million. The gross profit in the reported quarter was $393 million, up 5.8% from the prior-year quarter. The gross margin was 39.6% compared with the year-ago quarter’s 36.9%.
SG&A expenses totaled $190 million, which rose 14.6% from the prior-year quarter’s $166 million. Research and development expenses moved down 10.2% year over year to $22.9 million.
The operating income in the quarter was $180 million, flat compared with the year-ago quarter. Operating margin was 18.1% in the quarter compared with 17.9% in the year-ago quarter.
The adjusted segmental operating income increased 12.8% year over year to $239 million. The adjusted segmental margin was 24.1% in the reported quarter compared with the year-ago quarter’s 21%.
Q3 Segmental Performance
Net sales in the Flow segment totaled $372 million, down 7% from the prior-year quarter. Operating earnings for the segment rose 6.8% year over year to $83 million.
Net sales in the Water Solutions segment fell 3.3% year over year to $290 million. The segment’s earnings were $64 million compared with $69 million in the year-ago quarter.
Net sales in the Pool segment totaled $331 million in the quarter, up 7.3% year over year. Operating earnings for the segment grew 24.4% year over year to $112.7 million.
Cash Flow & Balance Sheet Updates
Pentair had cash and cash equivalents of around $218 million at the end of the third quarter compared with $170 million at 2023-end. Net cash generated from operating activities was $680.4 million in the first nine months of the current year compared with $502.3 million in the prior-year period. The company had a long-term debt of $1.63 billion as of Sept. 30, 2024, down from $1.99 billion as of Dec. 31, 2023.
On Sept. 23, 2024, Pentair announced that it would pay out a regular quarterly cash dividend of 23 cents per share on Nov. 1, 2024, to shareholders of record at the close of business on Oct. 18, 2024. PNR repurchased 0.6 million of its shares for $50 million in the third quarter. As of Sept. 30, 2024, the company had $500 million available under its share repurchase authorization.
Guidance for Q4 & 2024
The company expects an adjusted EPS of $4.27 for 2024, up from the earlier stated $4.25. The updated guidance indicates growth of 14% from the adjusted EPS of $3.75 reported in 2023.
Sales in 2024 are expected between flat and down 1% on a reported basis from the 2023 reported level.
For the fourth quarter, the company expects an adjusted EPS of $1.02. Pentair anticipates the quarter’s sales to decline 1-2% from the year-ago quarter’s reported figure.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Pentair has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Pentair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pentair (PNR) Up 6.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Pentair plc (PNR - Free Report) . Shares have added about 6.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pentair due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Pentair Beats Q3 Earnings & Sales Estimates, Raises '24 Outlook
Pentair has reported third-quarter 2024 adjusted earnings per share (EPS) of $1.09, beating the Zacks Consensus Estimate of $1.07. The bottom line also surpassed the company’s guidance of $1.06-$1.08 and improved 14% from the 94 cents reported in the prior year.
Including one-time items, EPS was 84 cents compared with the prior-year quarter’s 79 cents.
Net sales declined 1.5% year over year to $993 million in the quarter under review. However, the top line surpassed the Zacks Consensus Estimate of $990 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1% in the quarter.
The cost of sales declined 5.8% year over year to $600 million. The gross profit in the reported quarter was $393 million, up 5.8% from the prior-year quarter. The gross margin was 39.6% compared with the year-ago quarter’s 36.9%.
SG&A expenses totaled $190 million, which rose 14.6% from the prior-year quarter’s $166 million. Research and development expenses moved down 10.2% year over year to $22.9 million.
The operating income in the quarter was $180 million, flat compared with the year-ago quarter. Operating margin was 18.1% in the quarter compared with 17.9% in the year-ago quarter.
The adjusted segmental operating income increased 12.8% year over year to $239 million. The adjusted segmental margin was 24.1% in the reported quarter compared with the year-ago quarter’s 21%.
Q3 Segmental Performance
Net sales in the Flow segment totaled $372 million, down 7% from the prior-year quarter. Operating earnings for the segment rose 6.8% year over year to $83 million.
Net sales in the Water Solutions segment fell 3.3% year over year to $290 million. The segment’s earnings were $64 million compared with $69 million in the year-ago quarter.
Net sales in the Pool segment totaled $331 million in the quarter, up 7.3% year over year. Operating earnings for the segment grew 24.4% year over year to $112.7 million.
Cash Flow & Balance Sheet Updates
Pentair had cash and cash equivalents of around $218 million at the end of the third quarter compared with $170 million at 2023-end. Net cash generated from operating activities was $680.4 million in the first nine months of the current year compared with $502.3 million in the prior-year period. The company had a long-term debt of $1.63 billion as of Sept. 30, 2024, down from $1.99 billion as of Dec. 31, 2023.
On Sept. 23, 2024, Pentair announced that it would pay out a regular quarterly cash dividend of 23 cents per share on Nov. 1, 2024, to shareholders of record at the close of business on Oct. 18, 2024.
PNR repurchased 0.6 million of its shares for $50 million in the third quarter. As of Sept. 30, 2024, the company had $500 million available under its share repurchase authorization.
Guidance for Q4 & 2024
The company expects an adjusted EPS of $4.27 for 2024, up from the earlier stated $4.25. The updated guidance indicates growth of 14% from the adjusted EPS of $3.75 reported in 2023.
Sales in 2024 are expected between flat and down 1% on a reported basis from the 2023 reported level.
For the fourth quarter, the company expects an adjusted EPS of $1.02. Pentair anticipates the quarter’s sales to decline 1-2% from the year-ago quarter’s reported figure.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Pentair has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Pentair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.