Pentair's Q3 earnings top estimates, stock leaps

LONDON - Pentair plc (NYSE:PNR ) reported third quarter earnings that surpassed analyst expectations. Its shares added 1.5% in premarket trade Tuesday.

The water treatment solutions provider posted adjusted earnings per share of $1.09 for Q3, beating the analyst consensus of $1.07. Revenue came in at $993 million, slightly above estimates of $988.54 million and down 2% YoY. Excluding currency effects, acquisitions, and divestitures, core sales declined 1%.

Pentair's President and CEO John L. Stauch commented, "Our relentless dedication to strong execution, Transformation, and delivering value to our customers has driven yet another quarter of significant free cash flow and outstanding results, surpassing our expectations."

The company raised its full-year 2024 adjusted EPS guidance to approximately $4.27, up from its previous outlook. However, Pentair's Q4 revenue forecast of $965-975 million fell short of the $989.4 million analysts were expecting.

Pentair reported strong margin expansion in Q3, with adjusted return on sales increasing 310 basis points to 24.1%. Free cash flow surged to $234 million, up $90 million from the same period last year.

The company's Pool (NASDAQ:POOL ) segment was a bright spot, with sales growing 7% YoY and segment income jumping 24%. However, this was offset by declines in the Flow and Water Solutions segments.

Pentair maintained its commitment to shareholder returns, repurchasing 0.6 million shares for $50 million in Q3 and declaring its 48th consecutive annual dividend increase.

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Source: Investing.com