Pentair Clocks 1% Revenue Growth In Q4 Amid Mixed Segmental Performance

Pentair PLC PNR reported fourth-quarter net sales growth of 1% year-over-year to $1.00 billion and core sales decline of 3%, beating the consensus of $989.55 million.
Adjusted EPS of $0.82 beat the consensus of $0.79.
Gross margin contracted by 80 bps to 32.4%, operating income decreased by 25.9% Y/Y to $111.6 million, and the margin declined by 410 bps to 11.1%.
Consumer Solutions sales were down 0.5% Y/Y to $626.8 million, and return on sales was 23.1%, up 150 bps.
Industrial & Flow Technologies sales were up 4.9% Y/Y to $375.8 million, and return on sales was 17.4%, up 240 bps.
The company goes ahead with the 5% quarterly dividend hike to $0.22 per share promised last December.
CEO John L. Stauch said, "Our diverse portfolio generated growth in both segments in 2022, which was further strengthened by our strategic acquisition of Manitowoc Ice."
1Q23 Outlook: Pentair expects adjusted EPS of $0.76 - $0.78, vs. the consensus of $0.77.
It expects sales to be 0% - 1% Y/Y on a reported basis (consensus $1.00 billion).
FY23 Outlook: Pentair expects adjusted EPS of $3.50 - $3.70 vs. the consensus of $3.59. It sees sales growth of (3)% - 1% on a reported basis (consensus $4.18 billion).
Price Action: PNR shares are trading higher by 5.49% at $53.49 on the last check Tuesday.

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