Pentair PlcPNR is a global water, fluid, thermal management, and equipment protection partner with industry leading products, services, and solutions.
Pentair will benefit from improvement in the North American residential market, investment in its high-performing Technical Solutions and Water Quality Systems segments. The company will continue to aggressively manage its cost structure and drive productivity to work through the near-term challenges However, decline in backlog in the Valve & Control segment, challenges in energy-related businesses due to lower oil prices , weak power and mining markets, persistent slowing demand in agricultural markets remain headwinds.
Investors have thus been eagerly waiting to see how the company fares in its fiscal 2015 third quarter earnings results. Let's have a quick look at the earnings release of this Schaffhausen, Switzerland based diversified industrial manufacturing company with a market capitalization of $9.09 billion.
Estimate Trend & Surprise History: The investors should note that the earnings estimate for Pentair for the third quarter has been stationary over the past week and month. The Zacks Consensus Estimate has remained static at 96 cents over these periods.
As regards earnings surprise, Pentair has outpaced the Zacks Consensus Estimate in the past 4 quarters, with an average beat of 2.34%.
Earnings: Pentair beat the Zacks Consensus Estimate by 1%. Analysts polled by Zacks were expecting earnings per share (EPS) of 96 cents and the company reported EPS of 97 cents. Earnings came in at the upper end of the management guidance of EPS in the range of 94 cents to 97 cents
Revenue: Pentair however missed on revenues. It reported third quarter fiscal 2015 revenues of $1,552 million, falling short of the Zacks Consensus Estimate of $1,606 million as well as the management guidance of $1.6 billion.
Key Developments to Note: Pentair updated its fiscal 2015 EPS guidance to a range of $3.84 to $3.86, up from the prior guidance of $3.80 to $3.90. the updated guidance excludes approximately 50 cents per share of non-cash amortization. Compared to the fiscal 2014 adjusted EPS of $4.23 (excluding 45 cents per share of non-cash amortization), this reflects an annual decline of around 9%. Fiscal 2015 sales is projected at $6.4 billion, down approximately 9% year over year on a reported basis and down 4% on a core basis.
Pentair also initiated its fourth quarter fiscal 2015 guidance. The company expects EPS in the range of $1.03 to $1.05 on the back of revenues of approximately $1.7 billion.
Zacks Rank: Currently, Pentair carries a Zacks Rank #2 (Buy). 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!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.