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Pentair (PNR) to Report Q2 Earnings: What's in the Cards?
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Pentair plc (PNR - Free Report) is slated to report second-quarter 2018 results on Jul 25.
In the last reported quarter, Pentair’s adjusted earnings per share beat the Zacks Consensus Estimate by more than 6%. Notably, the company delivered an average positive earnings surprise of roughly 1.78% in the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Pentair’s second-quarter performance is expected to primarily reflect positive impact of the separation of the Electrical business. On Apr 30, 2018, the company completed the separation which will create two industry leading pure-play companies in Water and Electrical — Pentair plc and nVent Electric plc ("nVent") — respectively. Pentair now continues to operate as a leading global water company focused on smart, sustainable solutions.
For the second quarter, Pentair guided adjusted EPS in the range of 67-69 cents, reflecting 47% year-over-year growth at the mid-point. The Zacks Consensus Estimate for earnings plunged roughly 32% over the last 90 days to 69 cents. Nevertheless, the earnings estimate reflects roughly 45% year-over-year growth and is at the higher end of Pentair’s second-quarter guided range.
Pentair also projects its revenues to be around $0.79 billion in the quarter to be reported, up around 4-5% on a reported basis and up 3-4% on a core basis, compared with second-quarter 2017. The Zacks Consensus Estimate for sales is pegged at $0.79 billion, reflecting a year-over-year jump of nearly 60%.
However, material cost inflation and strengthening of the U.S. dollar remain headwinds. Pentair continues to witness inflation in material and other costs.
The aforementioned headwinds have largely dampened investors’ confidence in the stock. Shares of the company have plunged 32% in a year, significantly wider than the industry’s decline of roughly 6%.
Zacks Model
Our proven model does not show that Pentair is likely to beat earnings estimates this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pentair has an Earnings ESP of -0.97% and carries a Zacks Rank #4 (Sell), which makes surprise prediction inconclusive.
As it is we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Terex Corporation (TEX - Free Report) , with an Earnings ESP of +0.05% and a Zacks Rank #2. The company’s shares have been up around 11% over the past year.
Altra Industrial Motion Corp. , with an Earnings ESP of +2.29% and a Zacks Rank #3. Its shares have rallied over 14% in the past year.
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Pentair (PNR) to Report Q2 Earnings: What's in the Cards?
Pentair plc (PNR - Free Report) is slated to report second-quarter 2018 results on Jul 25.
In the last reported quarter, Pentair’s adjusted earnings per share beat the Zacks Consensus Estimate by more than 6%. Notably, the company delivered an average positive earnings surprise of roughly 1.78% in the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Pentair plc Price and EPS Surprise
Pentair plc Price and EPS Surprise | Pentair plc Quote
Key Factors to Consider
Pentair’s second-quarter performance is expected to primarily reflect positive impact of the separation of the Electrical business. On Apr 30, 2018, the company completed the separation which will create two industry leading pure-play companies in Water and Electrical — Pentair plc and nVent Electric plc ("nVent") — respectively. Pentair now continues to operate as a leading global water company focused on smart, sustainable solutions.
For the second quarter, Pentair guided adjusted EPS in the range of 67-69 cents, reflecting 47% year-over-year growth at the mid-point. The Zacks Consensus Estimate for earnings plunged roughly 32% over the last 90 days to 69 cents. Nevertheless, the earnings estimate reflects roughly 45% year-over-year growth and is at the higher end of Pentair’s second-quarter guided range.
Pentair also projects its revenues to be around $0.79 billion in the quarter to be reported, up around 4-5% on a reported basis and up 3-4% on a core basis, compared with second-quarter 2017. The Zacks Consensus Estimate for sales is pegged at $0.79 billion, reflecting a year-over-year jump of nearly 60%.
However, material cost inflation and strengthening of the U.S. dollar remain headwinds. Pentair continues to witness inflation in material and other costs.
The aforementioned headwinds have largely dampened investors’ confidence in the stock. Shares of the company have plunged 32% in a year, significantly wider than the industry’s decline of roughly 6%.
Zacks Model
Our proven model does not show that Pentair is likely to beat earnings estimates this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pentair has an Earnings ESP of -0.97% and carries a Zacks Rank #4 (Sell), which makes surprise prediction inconclusive.
As it is we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Graco Inc. (GGG - Free Report) , with an Earnings ESP of +4.00% and a Zacks Rank #1 (Strong Buy). The stock has gained around 32% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Terex Corporation (TEX - Free Report) , with an Earnings ESP of +0.05% and a Zacks Rank #2. The company’s shares have been up around 11% over the past year.
Altra Industrial Motion Corp. , with an Earnings ESP of +2.29% and a Zacks Rank #3. Its shares have rallied over 14% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>