We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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’s revenues and earnings improved in fourth-quarter 2021, aided by strong demand in the residential-focused businesses, as well as the ongoing recovery in the commercial and industrial businesses. The company beat the Zacks Consensus Estimate for both metrics.
The company has an impressive earnings surprise history. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 11.5%.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $952 million, indicating growth of 9.9% from the year-ago reported figure. The same for earnings is pegged at 81 cents, suggesting a somewhat flat performance year over year. The Zacks Consensus Estimate for quarterly earnings has been unchanged over the past 30 days.
What the Zacks Model Unveils
The proven Zacks model does not 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 beating estimates. This is not the case here, as you will see. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Pentair is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Pentair currently carries a Zacks Rank #4 (Sell).
Key Factors to Note
Pentair has been witnessing solid improvement in its residential facing businesses over the past few quarters as consumers stayed at home due to the concerns regarding the emergence of different variants of the COVID-19 virus. Thus, they have been spending to enhance their at-home quality of life by investing in pools.
Apart from pool construction, the demand for pool maintenance has been strong. The impacts of the robust demand and the near-record backlog at the end of 2021 are likely to get reflected in the first-quarter 2022 results.
Nearly 80% of Pentair’s Consumer Solutions segment serves residential markets. The robust demand is likely to get reflected in the first-quarter results. The balance of the segment’s revenues is generated from the commercial business, which has picked up lately as the restaurant and hospitality industries have reopened. The company’s efforts to expand in the areas of pool, and residential and commercial water treatment through acquisitions, the introduction of water-treatment solutions, investments and innovations are likely to have contributed to the Consumer Solutions segment’s performance in the quarter to be reported.
The Zacks Consensus Estimate for the Consumer Solutions segment’s revenues is currently pegged at $589 million, suggesting an improvement of 13% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter is pinned at $134 million, indicating year-over-year growth of 2%.
Activities in commercial and industrial businesses have picked up lately. This, in turn, is likely to have contributed to the Industrial & Flow Technologies segment’s performance in the March-ended quarter. The Zacks Consensus Estimate for the Industrial & Flow Technologies segment’s revenues is pegged at $364 million, indicating an improvement of 6% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $52 million, suggesting growth of 4% from $50 million reported a year ago.
Pentair has been witnessing inflationary increases due to high demand and a tight supply of raw materials such as metals, resins and electronics, and rising logistics costs. While it has been undertaking pricing actions and focusing on productivity improvements that may have offset these increases, supply-chain pressures and inflationary increases are likely to have weighed on the quarter’s performance.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have declined 28.2% so far this year compared with the industry’s plunge of 32%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
A. O. Smith (AOS - Free Report) currently has an Earnings ESP of +1.99% and a Zacks Rank of 3. The Zacks Consensus Estimate for the company’s revenues for the first quarter of 2022 is pegged at $970 million, which indicates year-over-year growth of 26.2%.
The Zacks Consensus Estimate for A. O. Smith’s earnings for the first quarter of 2022 of 76 cents indicates year-over-year growth of 27%. AOS’ earnings beat the consensus mark in all of the trailing four quarters, the average surprise being 13.7%.
Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.5%.
The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2021 is currently pegged at $1.60, suggesting year-over-year growth of 11%.
ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.
Mueller Water Products (MWA - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $294.5 million for the first quarter of 2022 indicates year-over-year growth of 10%.
The consensus mark for Mueller Water’s earnings for the quarter under review is pegged at 15 cents, implying 7% growth from the prior-year quarter. The company beat estimates in three of the trailing four quarters, while missing on one occasion, the average surprise being 11.5%.
Image: Bigstock
Pentair (PNR) to Report Q1 Earnings: What's in the Offing?
Pentair plc (PNR - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before the opening bell.
Q4 Results & Surprise History
Pentair’s revenues and earnings improved in fourth-quarter 2021, aided by strong demand in the residential-focused businesses, as well as the ongoing recovery in the commercial and industrial businesses. The company beat the Zacks Consensus Estimate for both metrics.
The company has an impressive earnings surprise history. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 11.5%.
Pentair plc Price and EPS Surprise
Pentair plc price-eps-surprise | Pentair plc Quote
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $952 million, indicating growth of 9.9% from the year-ago reported figure. The same for earnings is pegged at 81 cents, suggesting a somewhat flat performance year over year. The Zacks Consensus Estimate for quarterly earnings has been unchanged over the past 30 days.
What the Zacks Model Unveils
The proven Zacks model does not 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 beating estimates. This is not the case here, as you will see. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: The Earnings ESP for Pentair is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Pentair currently carries a Zacks Rank #4 (Sell).
Key Factors to Note
Pentair has been witnessing solid improvement in its residential facing businesses over the past few quarters as consumers stayed at home due to the concerns regarding the emergence of different variants of the COVID-19 virus. Thus, they have been spending to enhance their at-home quality of life by investing in pools.
Apart from pool construction, the demand for pool maintenance has been strong. The impacts of the robust demand and the near-record backlog at the end of 2021 are likely to get reflected in the first-quarter 2022 results.
Nearly 80% of Pentair’s Consumer Solutions segment serves residential markets. The robust demand is likely to get reflected in the first-quarter results. The balance of the segment’s revenues is generated from the commercial business, which has picked up lately as the restaurant and hospitality industries have reopened. The company’s efforts to expand in the areas of pool, and residential and commercial water treatment through acquisitions, the introduction of water-treatment solutions, investments and innovations are likely to have contributed to the Consumer Solutions segment’s performance in the quarter to be reported.
The Zacks Consensus Estimate for the Consumer Solutions segment’s revenues is currently pegged at $589 million, suggesting an improvement of 13% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter is pinned at $134 million, indicating year-over-year growth of 2%.
Activities in commercial and industrial businesses have picked up lately. This, in turn, is likely to have contributed to the Industrial & Flow Technologies segment’s performance in the March-ended quarter. The Zacks Consensus Estimate for the Industrial & Flow Technologies segment’s revenues is pegged at $364 million, indicating an improvement of 6% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $52 million, suggesting growth of 4% from $50 million reported a year ago.
Pentair has been witnessing inflationary increases due to high demand and a tight supply of raw materials such as metals, resins and electronics, and rising logistics costs. While it has been undertaking pricing actions and focusing on productivity improvements that may have offset these increases, supply-chain pressures and inflationary increases are likely to have weighed on the quarter’s performance.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have declined 28.2% so far this year compared with the industry’s plunge of 32%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
A. O. Smith (AOS - Free Report) currently has an Earnings ESP of +1.99% and a Zacks Rank of 3. The Zacks Consensus Estimate for the company’s revenues for the first quarter of 2022 is pegged at $970 million, which indicates year-over-year growth of 26.2%.
The Zacks Consensus Estimate for A. O. Smith’s earnings for the first quarter of 2022 of 76 cents indicates year-over-year growth of 27%. AOS’ earnings beat the consensus mark in all of the trailing four quarters, the average surprise being 13.7%.
Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.5%.
The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2021 is currently pegged at $1.60, suggesting year-over-year growth of 11%.
ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.
Mueller Water Products (MWA - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $294.5 million for the first quarter of 2022 indicates year-over-year growth of 10%.
The consensus mark for Mueller Water’s earnings for the quarter under review is pegged at 15 cents, implying 7% growth from the prior-year quarter. The company beat estimates in three of the trailing four quarters, while missing on one occasion, the average surprise being 11.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.