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Pentair (PNR) to Report Q2 Earnings: What's in the Offing?

Pentair plc PNR is scheduled to report second-quarter 2022 results on Jul 26, before the opening bell.

Q1 Results & Surprise History

Pentair’s revenues and earnings improved in first-quarter 2022, aided by strong demand in the residential businesses and the ongoing recovery in the commercial and industrial businesses. The company beat the Zacks Consensus Estimate on both counts.

The company has an impressive earnings surprise history. Pentair beat earnings estimates in each of the trailing four quarters, the average surprise being 4.56%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.05 billion, indicating growth of 11.8% from the year-ago reported figure. The same for earnings is pegged at $1.00 per share, suggesting an increase of 19% year over year. The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days.

Pentair plc Price and EPS Surprise

 

Pentair plc price-eps-surprise | Pentair plc Quote

 

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.

But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Pentair is -2.88%.  

Zacks Rank: Pentair currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors to Note

Pentair has been witnessing solid improvement in its residential facing businesses in the past few quarters as consumers stayed at home due to the concerns regarding the emergence of different variants of the COVID-19 virus. Consumers have been investing in pools to enhance their at-home quality of life.

The pool business is benefiting from a large installed base and shift to more autonomous and more energy-efficient pools. The impacts of the robust demand and solid order trends are likely to get reflected in the second-quarter 2022 results.

The commercial filtration business has picked up lately as the restaurant and hospitality industries have reopened. The company’s efforts to expand in the areas of the 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 $665 million, suggesting an improvement of 15% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter is pinned at $162 million, indicating year-over-year growth of 13%.

Pentair has been benefiting from a strong recovery in commercial and industrial businesses. This is likely to have contributed to the Industrial & Flow Technologies segment’s performance in the June-ended quarter. The Zacks Consensus Estimate for the segment’s revenues is pegged at $383 million, indicating an improvement of 5% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $61 million, suggesting growth of 7% from $57 million reported a year ago.

Pentair has been witnessing inflationary increases due to high demand, a tight supply of raw materials such as metals, resins and electronics and rising logistics costs. While it has been implementing 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

Shares of the company have declined 25.4% in the past six months compared with the industry’s plunge of 35.7%.

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Zacks Investment Research


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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:

MRC Global Inc. MRC currently has an Earnings ESP of +30.27% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2022 earnings has moved up 14% in the past 30 days to 25 cents per share, suggesting year-over-year growth of 213%.

The Zacks Consensus Estimate for MRC Global’s quarterly revenues is pegged at $847 million, which indicates an increase of 23.4% from the prior-year quarter’s levels.

Crane Holdings, Co. CR currently has an Earnings ESP of +6.98% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is currently pegged at $1.78 per share, suggesting a 2.7% decline from the year-ago quarter’s tally.

The Zacks Consensus Estimate for quarterly revenues is pinned at $800 million, highlighting year-over-year growth of 0.5%. Crane Holdings has a trailing four-quarter earnings surprise of 22.2%, on average. It has long-term earnings growth of 8.9%.

Terex Corporation TEX currently has an Earnings ESP of +4.40% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings has gone down 1.2% in the past 30 days and is currently pegged at 85 cents per share. The projection indicates a 16.7% decline from the prior-year quarter’s tally.

The Zacks Consensus Estimate for Terex’s quarterly revenues is pegged at $1.08 billion, which indicates a year-over-year improvement of 3.7%. TEX has a trailing four-quarter earnings surprise of 49%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Terex Corporation (TEX) : Free Stock Analysis Report
 
Pentair plc (PNR) : Free Stock Analysis Report
 
MRC Global Inc. (MRC) : Free Stock Analysis Report
 
Crane Holdings, Co. (CR) : Free Stock Analysis Report
 
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