A month has gone by since the last earnings report for Pentair plc (PNR Quick QuotePNR - Free Report) . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Pentair due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Pentair Earnings & Sales Surpass Estimates in Q4, EPS Up Y/Y

Pentair reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate of $1.02. The bottom line also surpassed the company’s guidance of $1.02 and improved 24% from earnings of 87 cents per share in the prior year.

Including one-time items, EPS was 99 cents compared with the prior-year quarter’s $1.25.

Net sales declined 1.2% year over year to $973 million. However, the top line surpassed the Zacks Consensus Estimate of $970 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1%.

Pentair’s Cost & Margins in Q4

The cost of sales declined 4% year over year to $595 million. The gross profit was $378 million, up 3% from the prior-year quarter. The gross margin was 38.8% compared with the year-ago quarter’s 37.5%.

SG&A expenses totaled $161 million, down 8.5% from the prior-year quarter’s $176 million. Research and development expenses declined 7.2% year over year to $21.8 million.

The operating income was $195 million, up 17% from the year-ago quarter. Operating margin was 20.1% compared with 17.0% in the year-ago quarter.
The adjusted segmental operating income increased 17% year over year to $231 million. The adjusted segmental margin was 23.8% compared with the year-ago quarter’s 20.1%.

Pentair’s Q4 Segment Performances

Net sales in the Flow segment totaled $361 million, down 4.7% from the prior-year quarter. Adjusted operating earnings for the segment rose 13% year over year to $73.6 million.

Net sales in the Water Solutions segment were down 4.3% year over year to $258 million. The segment’s earnings were $62 million compared with $52 million in the year-ago quarter.

Net sales in the Pool segment totaled $354 million, up 5% year over year. Operating earnings for the segment grew 13.6% year over year to $119 million.

PNR’s Cash Flow & Balance Sheet Updates

Pentair had cash and cash equivalents of around $119 million at the end of 2024 compared with $170 million at 2023-end. Net cash generated from operating activities was $767 million in 2024 compared with $621 million in the prior year. The company had a long-term debt of $1.64 billion as of Dec. 31, 2024, down from $1.99 billion as of Dec. 31, 2023.

Pentair recently hiked its dividend by 9% to 25 cents per share. This marks the 49th consecutive year that the company has increased its dividend. PNR repurchased 0.4 million of its shares for $50 million in the fourth quarter. As of Dec. 31, 2024, the company had $450 million available under its share repurchase authorization.

PNR’s 2024 Performance

Pentair reported an adjusted EPS of $4.33 for 2024, which beat the Zacks Consensus Estimate of $4.28 . Earnings were up 15% compared with 2023 earnings of $3.75 per share. Pentair had provided an EPS guidance of $4.27 for 2024. Including one-time items, EPS was $3.74 compared with the $3.75 in 2023.

Net sales dipped 0.5% year over year to $4.1 billion but beat the Zacks Consensus Estimate of $4.08 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales were flat.

Pentair’s Guidance for Q1 & 2025

The company expects adjusted EPS of $4.65-$4.82 for 2025. The mid-point of the range indicates year-over-year growth of 9%. Sales are expected between flat and up 2% on a reported basis from the 2024 level.

For the first quarter, the company expects an adjusted EPS between $1.00 and $1.02. Pentair anticipates the quarter’s sales to decline 3-4% from the year-ago quarter’s figure.

 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -7.31% due to these changes.

VGM Scores

At this time, Pentair has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pentair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Pentair belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Waste Management (WM Quick QuoteWM - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.

Waste Management reported revenues of $5.89 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $1.70 for the same period compares with $1.74 a year ago.

Waste Management is expected to post earnings of $1.69 per share for the current quarter, representing a year-over-year change of -3.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.

Waste Management has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.