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Pentair (PNR) Beats on Q1 Earnings & Sales, '17 View Firm

Zacks Equity Research

Pentair Plc PNR is a global water, fluid, thermal management, and equipment protection partner with industry leading products, services, and solutions. It has a market capitalization of $11.04 billion.

Pentair continues to aggressively manage its cost structure and drive productivity to work through the near-term challenges. Despite the favorable outlook for end markets, Pentair is likely to experience differing levels of volatility, depending on the end market. The company’s results will also be hurt by the strengthening of the U.S. dollar, and material and other cost inflation.

Investors have thus been eagerly waiting to see how the company fares in its first quarter earnings results. Let’s have a quick look at the earnings release of this diversified industrial manufacturing company.

Estimate Trend & Surprise History: You should note that the earnings estimate revisions for Pentair have remained stable prior to the earnings release. The Zacks Consensus Estimate currently stands at 61 cents for the first quarter.

As regards earnings surprise, Pentair has outpaced the Zacks Consensus Estimate in the past 4 quarters, with an average beat of 5.04%.

Pentair PLC. Price and EPS Surprise


Pentair PLC. Price and EPS Surprise | Pentair PLC. Quote

Earnings: Pentair beat the Zacks Consensus Estimate by 6.6%. Analysts polled by Zacks were expecting earnings per share (EPS) of 61 cents and the company reported adjusted EPS of 65 cents. Earnings came in line with the management guidance range.

Revenue: Pentair also beat on revenues. It reported first quarter revenues of $1.184 billion, beating the Zacks Consensus Estimate of $1.141 billion.

Key Developments to Note: Pentair reaffirmed its full year 2017 adjusted EPS guidance range of $3.45-$3.55. The company raised its outlook for full year revenues to approximately $4.8 billion from the prior view of $4.7 billion. It also guided second quarter 2017 adjusted EPS guidance range of 97–99 cents. The company expects second quarter revenue to be approximately $1.24 billion, which would be down approximately 5% on a reported and core basis compared to second quarter 2016 revenue.

Zacks Rank: Currently, Pentair carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.

Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.

Check back later for our full write up on this Pentair earnings report later!

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