Pentair (PNR) to Report Q3 Earnings: What's in the Offing?
Pentair plc PNR is scheduled to report third-quarter 2022 results on Oct 25, before the opening bell.
Q2 Results & Surprise History
Pentair’s revenues and earnings improved in second-quarter 2022, aided by a 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 3.81%.
Pentair plc Price and EPS Surprise
Pentair plc price-eps-surprise | Pentair plc Quote
Q3 Estimates
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.05 billion, indicating growth of 8.7% from the year-ago reported figure. The same for earnings is pegged at 93 cents per share, suggesting an increase of 4.5% year over year. The Zacks Consensus Estimate for quarterly earnings has moved down 1% in 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.
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 -0.67%.
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 have been investing in pools to enhance their at-home quality of life. The pool business is benefiting from a large installed base and a shift to more autonomous and energy-efficient pools. The impacts of robust demand and solid order trends are likely to be reflected in third-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 as well as residential and commercial water treatment through acquisitions,introduction of water-treatment solutions, investments and innovations are likely to have contributed to the Consumer Solutions segment’s performance in the reported quarter.
The Zacks Consensus Estimate for the Consumer Solutions segment’s revenues is currently pegged at $685 million, suggesting an improvement of 12% from the year-ago quarter. The consensus mark for the segment’s operating profit for the quarter is pinned at $164 million, indicating year-over-year growth of 14%.
The Zacks Consensus Estimate for the Industrial & Flow Technologies segment’s revenues is pegged at $366 million, indicating an improvement of 3% from the prior-year quarter. The consensus mark for the segment’s operating profit stands at $56 million, suggesting growth of 8% from $52 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 along with rising logistics costs. While it has been implementing pricing actions and focusing on productivity improvements that may have contributed to these increases, supply-chain pressures and inflationary increases are likely to have weighed on the quarter’s performance.
Price Performance
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Shares of the company have declined 42.3% in the past year compared with the industry’s plunge of 48.6%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which according to our model have the right combination of elements to post an earnings beat in their upcoming releases:
The Timken Company TKR currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings has moved up 2% in the past 60 days to $1.33 per share. The estimate suggests growth of 12.7% from the year-ago reported figure. TKR has a trailing four-quarter earnings surprise of 11.7%, on average.
The Zacks Consensus Estimate for TKR’s quarterly revenues is pegged at $1.09 billion, indicating an increase of 5% from the prior-year quarter’s levels.
Mueller Water Products MWA currently has an Earnings ESP of +17.65% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2022 earnings is currently pegged at 14 cents per share, suggesting 16.7% growth from the year-ago quarter. The estimate has gone up 8% over the past 60 days.
The Zacks Consensus Estimate for quarterly revenues is pinned at $320.7 million, suggesting growth of 8.5% from the prior-year tally. MWA has a trailing four-quarter earnings surprise of 5.17%, on average.
O-I Glass Inc. OI currently has an Earnings ESP of +2.20% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings has gone up 3% in the past 60 days and is currently pegged at 61 cents per share. The projection indicates 5.2% growth from the year-ago reported figure.
The Zacks Consensus Estimate for OI’s quarterly revenues is pegged at $1.71 billion, which indicates an improvement of 6.27% from the year-ago reported figure. OI has a trailing four-quarter earnings surprise of 17.4%, on average.
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