Pentair Analysts Increase Their Forecasts After Upbeat Earnings

Pentair plc PNR reported better-than-expected second-quarter financial results and revised its FY24 adjusted EPS guidance above estimates.

Pentair reported a second-quarter 2024 net sales rose 2% Y/Y to $1.099 billion, marginally beating the consensus of $1.095 billion. Adjusted EPS rose 18% Y/Y to $1.22, surpassing the consensus of $1.14, according to data from Benzinga Pro.

Flow sales decreased by 4% YoY to $396.8 million, Segment income of $84.4 million (+13% Y/Y), and the operating margin was 21.3%, an increase of 310 bps Y/Y. Water Solutions sales were $310.5 million (-8% Y/Y), Segment income was $72.9 million (-3% Y/Y), and ROS was 23.5%, up 130 bps Y/Y. Pool segment sales were $391.5 million (+17% Y/Y), Segment income was $133.6 million (+27% Y/Y), and ROS was 34.1%, up 270 bps Y/Y.

For FY24, Pentair revised adjusted EPS to $4.25 (from $4.15-$4.25) vs. consensus of $4.18; sees sales growth to be roughly flat to down 1% (vs. an increase of 2%-3% earlier) on a reported basis.

The company sees third-quarter adjusted EPS of $1.06 – $1.08 versus a consensus of $1.07. It expects sales to be down about 2%-3% on a reported basis.

Pentair shares gained 9% to close at $87.19 on Tuesday.

These analysts made changes to their price targets on Pentair following the announcement.

• Oppenheimer analyst Bryan Blair maintained Pentair with an Outperform rating, while raising the price target from $92 to $98.
• Keybanc analyst Jeffrey Hammond maintained the stock with an Overweight rating and increased the price target from $92 to $97.

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