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Pentair Beats Q3 Earnings & Sales Estimates, Raises '24 Outlook

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Pentair plc (PNR - Free Report) 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.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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.

Pentair plc Price, Consensus and EPS Surprise

 

Pentair plc Price, Consensus and EPS Surprise

Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote

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%.

Pentair’s Q3 Segmental Performance

Net sales in the Flow segment totaled $372 million, down 7% from the prior-year quarter. Our estimate for the segment’s net sales was $385 million for the quarter.

Operating earnings for the segment rose 6.8% year over year to $83 million. Our estimate for the segment’s operating profit was $82 million.

Net sales in the Water Solutions segment fell 3.3% year over year to $290 million. Our estimate for the segment’s net sales was $288 million for the quarter. The segment’s earnings were $64 million compared with $69 million in the year-ago quarter. The figure lagged our estimate of $69 million.

Net sales in the Pool segment totaled $331 million in the quarter, up 7.3% year over year. Our estimate for the segment’s net sales was $315 million. Operating earnings for the segment grew 24.4% year over year to $112.7 million. Our estimate for the segment’s operating income was $107 million.

PNR’s 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.

Pentair’s 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.

PNR's Share Price Performance

The Pentair stock has gained 59.7% over the past year compared with the industry’s 63.5% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

A Pool Stock Awaiting Results

Pool Corp. (POOL - Free Report) is scheduled to release third-quarter 2024 results on Oct. 24.

The Zacks Consensus Estimate for POOL’s third-quarter earnings is pegged at $3.15 per share, indicating a year-over-year decline of 10%. The estimate for the company’s top line is pegged at $1.41 billion, implying a decrease of 4.7% from the prior year’s reported figure. POOL has a trailing four-quarter average surprise of 1.2%.

A Manufacturing - Thermal Products Stock Awaiting Earnings Release

Zebra Technologies Corporation (ZBRA - Free Report) is scheduled to release its third-quarter 2024 results on Oct. 29.

The Zacks Consensus Estimate for ZBRA’s third-quarter 2024 earnings is pegged at $3.24 per share, indicating a year-over-year surge from the prior year’s reported number of 87 cents. The estimate for the company’s top line is pegged at $1.21 billion, implying a decrease of 26.5% from the prior-year figure. It has a trailing four-quarter average surprise of 11.9%.

Pentair’s Zacks Rank & Another Stock to Consider

Pentair currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Another top-ranked stock from the Industrial Products sector is Parker-Hannifin Corporation (PH - Free Report) . It also carries a Zacks Rank #2 at present. 

The Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2025 earnings is pegged at $26.68 per share. The company has a trailing four-quarter average earnings surprise of 11.2%. PH shares have gained 76.4% in a year.

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