Pentair Set to Report Strong Q4 Earnings Amid Solid Growth in Water Solutions
Analysts anticipate a notable increase in earnings as the company gears up for its quarterly results.
London-based Pentair plc (PNR) is a prominent player in water treatment and sustainable solutions. The company provides a wide range of innovative products and services tailored to meet the needs of residential, commercial, and industrial clients around the globe. With a market cap of $16.4 billion, Pentair’s expertise encompasses water filtration, flow management, and environmental solutions. Investors are eager to hear the company’s Q4 earnings, set for release on Tuesday, Feb. 4.
Before the earnings announcement, analysts predict Pentair will report a profit of $1.02 per share, which would represent a 17.2% increase from the $0.87 per share reported in the same quarter last year. Historically, Pentair has outperformed Wall Street’s earnings per share (EPS) estimates in each of the last four quarters.
For the latest quarter, Pentair delivered an EPS of $1.09, surpassing consensus estimates by 1.9%. This success stemmed from effective operational management and a steady demand for its water treatment offerings.
Looking ahead, analysts forecast Pentair’s EPS will grow by 14.1% to reach $4.28 in fiscal 2024, a rise from $3.75 in 2023. Projections for fiscal 2025 estimate an additional 14% annual increase, bringing EPS to $4.88.
Pentair’s stock has shown impressive growth, gaining 42.5% over the past year, outpacing the 24.4% rise of the S&P 500 Index ($SPX) and the 18.4% returns of the Industrial Select Sector SPDR Fund (XLI) during the same timeframe.
Despite posting results that exceeded expectations, Pentair’s shares experienced a slight decline after the Q3 earnings announcement on Oct. 22. The company reported net sales of $993.4 million, which marked a 1.5% decrease year-over-year. Operating income reached $180 million, with a return on sales of 18.1%, a modest increase of 20 basis points from the previous year. For Q4, Pentair expects sales between $965 million and $975 million.
The projection from analysts regarding Pentair stock remains cautiously positive, maintaining a “Moderate Buy” rating overall. Among the 19 analysts covering the stock, 10 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and eight recommend a “Hold” rating.
The consensus target price for Pentair stands at $113.61, indicating a potential upside of 14.2% from its current price.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein is intended solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
