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Pentair (PNR) Tops Q4 Earnings, Sales Lag; Gives '17 View

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. The company is also investing in its high-performing Technical Solutions and Water Quality Systems segments where it sees strategic organic and inorganic growth opportunities. However, volatile raw materials prices, stronger dollar and sluggish industrial environment remain headwinds for Pentair.

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

Estimate Trend & Surprise History: The investors should note that the earnings estimate for Pentair for the fourth quarter has moved south over the past month. The Zacks Consensus Estimate is currently pegged at 73 cents, moving 1.4% down over the said timeframe.

As regards earnings surprise, Pentair has outpaced the Zacks Consensus Estimate in the past 4 quarters, with an average beat of 5.49%.

Pentair PLC. Price and EPS Surprise


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

Earnings: Pentair beat the Zacks Consensus Estimate by 7%. Analysts polled by Zacks were expecting earnings per share (EPS) of 73 cents and the company reported adjusted EPS of 78 cents.

Revenue: Pentair however missed on revenues. It reported fourth quarter revenues of $1.118 billion, falling short of the Zacks Consensus Estimate of $1.207 billion.

Key Developments to Note: Pentair initiated its 2017 guidance. The company expects adjusted EPS in the range of $3.45-$3.55 on the back of revenues of approximately $4.7 billion. It also guided first quarter 2017 adjusted EPS of approximately 61 cents. The company expects first quarter revenue to be approximately $1.14 billion, which would be down approximately 4% on a reported and core basis compared to first 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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