Pentair Stock Gains On Strong Q2, Raised FY21 Outlook

Pentair PLC PNR reported second-quarter sales growth of 32% year-over-year to $941 million, beating the consensus estimate of $907.01 million. Core sales grew 28%.
Consumer Solutions sales were $576.9 million (+43.8% Y/Y), and return on sales expanded 80 bps to 24.9%.
Industrial & Flow Technologies sales were $363.9 million (+16.7% Y/Y), and return on sales expanded 160 bps to 15.7%.
Adjusted EPS improved to $0.84 from $0.59 in 2Q20, beating the consensus estimate of $0.80.
The gross margin expanded by 180 bps to 36.2%.
The operating income increased by 45.6% Y/Y to $161.8 million, and the margin expanded by 160 bps to 17.2%.
Pentair generated cash from operating activities year-to-date of $360.8 million, compared to $266 million a year ago. Free cash flow provided by continuing operations $340 million.
Q3 Outlook: The company expects GAAP EPS from continuing operations of $0.77 - $0.81 and an adjusted EPS of $0.81 - $0.85, versus a consensus of $0.78.
It also expects sales to grow 16% - 19% compared to 3Q20.
FY21 Outlook: Pentair estimates GAAP EPS from continuing operations of $3.13 - $3.23, versus the prior view of $2.65 - $2.80.
It sees adjusted EPS of $3.30 - $3.40, up from the previous view of $2.80 - $2.95, versus a consensus of $3.20. It estimates sales to grow 21% - 23%, versus the prior outlook for 6% - 11% growth.
Price action: PNR shares are trading higher by 3.83% at $71.33 on the last check Tuesday.

Momentum68.33

Growth49.68

Quality84.65

Value22.85

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