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Pentair (PNR) Beats on Q3 Earnings, Misses Revenue Estimates

Zacks Equity Research

Pentair plc PNR delivered third-quarter 2019 adjusted earnings per share (EPS) of 58 cents, beating the Zacks Consensus Estimate of 55 cents. The reported figure also came in higher than the prior-year quarter’s 54 cents. Net sales inched up 0.3% year over year to $714 million. The figure, however, missed the Zacks Consensus Estimate of $718 million. Excluding the impact of acquisitions, divestitures and currency translation, core sales declined 2% in the reported quarter.

Pentair plc Price and Consensus

Pentair plc Price and Consensus

Pentair plc price-consensus-chart | Pentair plc Quote

Gross profit in the reported quarter came in at $255 million, up 4.6% from the prior-year quarter.

Selling, general and administrative expenses totaled $126.4 million, up from the $116.3 million witnessed in the year-earlier quarter. Research and development expenses flared up 3.7% year over year to $19.8 million. Adjusted segmental operating income increased 1% year on year to $123 million.

Segmental Performance

Net sales in the Aquatic Systems segment declined around 6% year over year to $218.7 million. Operating earnings decreased 8.5% to $54.8 million.

Net sales in the Filtration Solutions segment totaled $273.5 million, up 13.8% from the prior-year quarter. Operating earnings increased 17.4% year over year to $45.1 million.

Net sales in the Flow Technologies segment totaled $221 million, down 7.1% year on year. Segmental operating earnings climbed 3.6% year over year to $37.9 million.

Financial Update

Pentair had cash and cash equivalents of $113.2 million as of Sep 30, 2019, up from $74.3 million as of Dec 31, 2018. The company generated $266.1 million of cash from operations during the nine-month period ended Sep 30, 2019 compared with the $299.2 million reported in the comparable period last year.

Guidance

Pentair has reaffirmed its adjusted EPS guidance at $2.35 for 2019. Sales in the ongoing year are projected be flat on a reported basis and down roughly 1% on a core basis compared with 2018.

Pentair also provided the fourth-quarter 2019 adjusted EPS guidance of 64-66 cents. Sales in the quarter are projected to be up roughly 2% on a reported basis and flat on a core basis compared with the prior-year quarter.

Price Performance

 

Shares of Pentair have rallied 0.2% in the past year compared with the industry’s growth of 13.2%.

Zacks Rank and Stocks to Consider

Pentair currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Industrial Products sector are Plug Power Inc. PLUG, Cintas Corporation CTAS and Sharps Compliance Corp SMED. While Plug Power sports a Zacks Rank #1 (Strong Buy), Cintas and Sharps carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Plug Power has a projected earnings growth rate of 2.8% for the current year. The stock has surged 139.5% so far this year.

Cintas has an estimated earnings growth rate of 12.74% for 2019. Shares of the company have rallied 58.9% year to date.

Sharps Compliance has an expected earnings growth rate of a whopping 500% for the ongoing year. The company has gained 21.5% so far this year.

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