Pentair Forecasts Strong Growth Ahead of Q4 Earnings Report

Pentair plc is set to announce Q4 earnings, with EPS expected to rise by 17.2% to $1.02. Analysts remain optimistic about Pentair’s performance due to strong demand in water treatment solutions and a consistent track record of exceeding EPS estimates.

Date: 10-01-2025

AI Rating: 7

Pentair plc's Earnings Per Share (EPS) Outlook

Pentair is forecasted to report an EPS of $1.02 for its upcoming Q4 earnings, marking a significant increase of 17.2% from $0.87 reported in the same quarter last year. This positive trend is expected to be further underscored by a projected EPS rise to $4.28 in fiscal 2024, reflecting a 14.1% increase from $3.75 in 2023. Additionally, analysts have estimates for EPS to reach $4.88 by fiscal 2025, indicating robust growth prospects.

Pentair's performance has been solid with its last reported EPS of $1.09 surpassing consensus estimates by 1.9%. The growth in EPS highlights the company's strong operational execution and increased demand for their water treatment solutions.

Net Sales and Market Position

Despite the positive EPS outlook, Pentair reported net sales of $993.4 million in Q3, which exhibited a 1.5% decline compared to the previous year. The operating income for the same period was $180 million, with a return on sales of 18.1%, up 20 basis points year-over-year. The company anticipates Q4 sales to be between $965 million and $975 million, which could indicate some challenges ahead in revenue growth.

Market Performance and Analyst Sentiment

Pentair's shares have experienced a notable gain of 42.5% over the past 52 weeks, outperforming major indices like the S&P 500, which saw a 24.4% increase. However, following their Q3 earnings report, shares saw a slight decline despite better-than-expected results, suggesting cautious investor sentiment. Analysts currently maintain a cautious view with a “Moderate Buy” consensus on the stock, highlighting mixed opinions amongst them.

Stocks: PNR