What You Need To Know Ahead of Pentair’s Earnings Release

London-based Pentair plc (PNR) is a global leader in water treatment and sustainable solutions, offering a comprehensive range of innovative products and services to address the diverse needs of residential, commercial, and industrial clients worldwide. With a market cap of $16.4 billion, Pentair operates across various markets, providing cutting-edge water filtration, flow management, and environmental solutions. The company is set to release its Q4 earnings on Tuesday, Feb. 4.

Ahead of the event, analysts expect Pentair to report a profit of $1.02 per share, up 17.2% from $0.87 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. 

Its EPS of $1.09 for the last reported quarter exceeded the consensus estimates by 1.9%. Pentair’s performance was driven by strong operational execution and sustained demand for water treatment solutions.

Analysts expect Pentair’s EPS to climb 14.1% to $4.28 in fiscal 2024, up from $3.75 in 2023. In fiscal 2025, EPS is projected to increase by 14% annually to $4.88.

Shares of Pentair have gained 42.5% over the past 52 weeks, outperforming both the S&P 500 Index’s ($SPX) 24.4% rise and the Industrial Select Sector SPDR Fund’s (XLI) 18.4% returns over the same period.

Despite delivering better-than-expected results, Pentair’s shares declined marginally following its Q3 earnings release on Oct. 22. The company reported net sales of $993.4 million, reflecting a 1.5% year-over-year decrease. Operating income reached $180 million with a return on sales of 18.1%, up 20 basis points from the prior-year period. For the fourth quarter, Pentair anticipates sales between $965 million and $975 million.

The consensus opinion on Pentair stock is cautiously optimistic, with a “Moderate Buy” rating overall. Out of the 19 analysts covering the stock, 10 recommend a “Strong Buy,” one advises a “Moderate Buy,” and eight suggest a “Hold” rating.

The average price target for Pentair is $113.61, indicating a 14.2% potential upside from the current price levels.

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 in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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