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Pentair (PNR) Q1 Earnings & Revenues Beat Estimates, Up Y/Y

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Pentair plc (PNR - Free Report) reported first-quarter 2020 adjusted earnings per share (EPS) of 52 cents, beating the Zacks Consensus Estimate of 44 cents. The figure also came in higher than 43 cents reported in the prior-year quarter.

Including one-time items, the bottom line came in at 43 cents compared with 30 cents in the prior-year quarter.

Net sales rose 3% year over year to $710 million. The top line surpassed the Zacks Consensus Estimate of $680 million. Excluding the impact of acquisitions, divestitures and currency translation, core sales grew 3% in the reported quarter.

Cost of sales inched up 1% year over year to $458 million. Gross profit in the reported quarter came in at $252 million, up 7% from the prior-year quarter.

Pentair plc Price, Consensus and EPS Surprise

Selling, general and administrative expenses totaled $132 million compared with $147 million in the prior-year quarter. Research and development expenses declined 8% year over year to $19 million. Adjusted segmental operating income improved 13% year over year to $112 million.

Segmental Performance

Net sales in the Consumer Solutions segment increased 9% year over year to $389 million. Operating earnings improved 13% year over year to $84.8 million.

Net sales in the Industrial and Flow Technologies segment totaled $321 million, down 3% from the prior-year quarter. Operating earnings decreased 3.6% year over year to $42.5 million.

Financial Update

Pentair had cash and cash equivalents of $169.3 million as of Mar 31, 2020, up from $82.5 million as of Dec 31, 2019. The company utilized $162 million of cash from operations during first-quarter 2020 compared with the $257 million reported in the prior-year quarter.

Guidance Withdrawn

Pentair has withdrawn guidance for 2020 due to the uncertainty of the duration and extent of the COVID-19 pandemic impact.

Price Performance

Pentair’s share price has gone down 9.6% over the past year compared with the industry’s decline of 13.5%.

Zacks Rank & Stocks to Consider

Pentair currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Sharps Compliance Corp. , Silgan Holdings Inc. (SLGN - Free Report) and Intellicheck, Inc. (IDN - Free Report) . While Sharps Compliance and Silgan sport a Zacks Rank #1 (Strong Buy), Intellicheck carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Sharps Compliance has an estimated earnings growth rate of 800% for the current year. In a year's time, the company’s shares have soared 95%.

Silgan has an expected earnings growth rate of 11.1% for 2020. The company’s shares have gained 17% in the past year.

Intellicheck has a projected earnings growth rate of 112.5% for the ongoing year. Over the past year, the company’s shares have rallied 83%.

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