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London-based Pentair plc (PNR) provides various water solutions, operating through Flow, Water Solutions, and Pool segments. With a market cap of $12.6 billion, Pentair delivers a comprehensive range of smart, sustainable water solutions to homes, businesses, and industries globally. It is expected to announce its Q2 earnings before the market opens on Tuesday, Jul. 23.
Ahead of the event, analysts expect Pentair to report a profit of $1.15 per share, up 11.7% from $1.03 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS for the last reported quarter grew 3.3% annually to $0.94, exceeding the consensus estimates by 4.4%.
Looking Ahead to fiscal 2024, analysts expect Pentair to report an EPS of $4.22, up 12.5% from $3.75 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 13% annually to $4.77.
PNR stock is up 4.2% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.1% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 7% returns during the same time frame.
Pentair stock fell 0.9% after the release of its Q1 results on April 23, but it remained in the green for the next four trading sessions. Pentair reported a slight decrease in sales from $1,028.6 million in Q1 2023 to $1,017.2 million in Q1 2024. However, due to a decline in impairment cost and increased productivity in its Flow and Water Solutions segments, it saw an increase in gross profits. The company has shown resilience during challenging market conditions and spent $24.1 million on R&D, demonstrating its commitment to innovation.
Investors are a little jittery as the company's profit margin can be affected by inflationary pressure on labor costs and certain raw materials, which has been mitigated by increasing selling prices until now.
The consensus opinion on Pentair stock is bullish, with a “Moderate Buy” rating overall. Out of the 18 analysts covering the stock, 11 recommend “Strong Buy,” one advises “Moderate Buy,” and six suggest a “Hold” rating.
The average price target for Pentair is $91.06, indicating a potential upside of 20.2% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
