Pentair PlcPNR is a global water, fluid, thermal management, and equipment protection partner with industry leading products, services, and solutions. It has a market capitalization of $12.9 billion.
Pentair is poised to gain from consistent dealer wins, product innovations and the sale of the Valves & Controls business. The company expects adjusted core sales to grow approximately 4% in the third quarter. Further, improving end-market demand in the municipal water market and buoyancy in the Residential and Irrigation business will drive growth despite weakness prevalent in the Engineered Pump business. Moreover, Pentair's pricing actions will help mitigate higher inflation.
Investors have thus been eagerly waiting to see how the company fares in its third quarter earnings results. Let's have a quick look at the earnings release of this diversified industrial manufacturing company.
Estimate Trend & Surprise History: You should note that the earnings estimate revisions for Pentair have remained stable prior to the earnings release. The Zacks Consensus Estimate currently stands at 93 cents for the third quarter.
As regards earnings surprise, Pentair has outpaced the Zacks Consensus Estimate in three out of the past four quarters, with an average beat of 5.07%.
Pentair PLC. Price and EPS Surprise
Earnings: Pentair's adjusted earnings of 95 cents beat the Zacks Consensus Estimate of 93 cents in the third quarter. Earnings came ahead of the management guidance range.
Revenue: Pentair reported third quarter revenues of $1.227 billion, in line with the Zacks Consensus Estimate.
Key Developments to Note: Pentair updated its full year 2017 adjusted EPS guidance to $3.53 on the back of revenues of $4.9 billion. It also guided fourth quarter 2017 adjusted EPS of 93 cents, reflecting a 19% increase year over year. The company expects fourth quarter revenue to be approximately $1.24 billion, up approximately 4% on a reported basis and 1% on a core basis compared to fourth quarter 2016 revenue.
Pentair unveiled the name of its future Electrical company as nVent Electric plc (nVent) while the future Water company will retain the Pentair name. It also announced additional key leadership. The company`s separation into two independent, publicly-traded companies remains on track to be completed in the second quarter of 2018.
Zacks Rank: Currently, Pentair carries a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
Market Reaction: Shares remained flat in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on this Pentair earnings report later!
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