Pentair Reports Strong Q4, Stock Drops Despite Positive EPS

Pentair reports strong Q4 results but sees stock drop. Their adjusted earnings per share exceed estimates, yet the growth guidance unsettles investors. Concerns linger despite a 'Moderate Buy' consensus.

Date: 18-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Pentair’s adjusted EPS of $1.08 surpassed analysts’ consensus estimates by 5.9%. This positive announcement typically indicates solid performance, which can positively affect stock prices by boosting investor confidence.

Revenue Growth
The company faced a slight 1.2% drop in net sales year-over-year, amounting to $972.9 million. Although this decline was anticipated and the company still exceeded Street expectations for revenue, any drop in revenue can be concerning for investors, generally leading to a negative effect on stock pricing.

Future Growth Guidance
Pentair's fiscal 2025 top-line growth guidance is set at 0% to 2%, which misses Street expectations, leading to a loss of confidence among investors. Additionally, the adjusted EPS growth guidance of 7% to 11% also didn't meet expectations, which could further pressure stock prices negatively.

Analyst Ratings
Despite the setbacks, the company's consensus rating among analysts is a “Moderate Buy.” The number of analysts offering “Strong Buy” ratings has increased from 10 to 11 in the past month, indicating slight positive sentiment among experts.

The mixed results—strong adjusted EPS but weak future growth guidance—paint a complex picture for Pentair, making it a topic of concern among investors weighing the future potential against the current stock performance.

Stocks: PNR