Pentair plc PNR reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate of $1.02. The bottom line also surpassed the company’s guidance of $1.02 and improved 24% from earnings of 87 cents per share in the prior year.
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Including one-time items, EPS was 99 cents compared with the prior-year quarter’s $1.25.
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
Net sales declined 1.2% year over year to $973 million. However, the top line surpassed the Zacks Consensus Estimate of $970 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1%.
Pentair’s Cost & Margins in Q4
The cost of sales declined 4% year over year to $595 million. The gross profit was $378 million, up 3% from the prior-year quarter. The gross margin was 38.8% compared with the year-ago quarter’s 37.5%.
SG&A expenses totaled $161 million, down 8.5% from the prior-year quarter’s $176 million. Research and development expenses declined 7.2% year over year to $21.8 million.
The operating income was $195 million, up 17% from the year-ago quarter. Operating margin was 20.1% compared with 17.0% in the year-ago quarter.
The adjusted segmental operating income increased 17% year over year to $231 million. The adjusted segmental margin was 23.8% compared with the year-ago quarter’s 20.1%.
Pentair’s Q4 Segmental Performances
Net sales in the Flow segment totaled $361 million, down 4.7% from the prior-year quarter. Our estimate for the segment’s net sales was $371 million. Adjusted operating earnings for the segment rose 13% year over year to $73.6 million. Our estimate for the segment’s operating profit was $77 million.
Net sales in the Water Solutions segment were down 4.3% year over year to $258 million. Our estimate for the segment’s net sales was $263 million. The segment’s earnings were $62 million compared with $52 million in the year-ago quarter. Our estimate was at $61.7 million.
Net sales in the Pool segment totaled $354 million, up 5% year over year. Our estimate for the segment’s net sales was $334 million. Operating earnings for the segment grew 13.6% year over year to $119 million. Our estimate for the segment’s operating income was $107 million.
PNR’s Cash Flow & Balance Sheet Updates
Pentair had cash and cash equivalents of around $119 million at the end of 2024 compared with $170 million at 2023-end. Net cash generated from operating activities was $767 million in 2024 compared with $621 million in the prior year. The company had a long-term debt of $1.64 billion as of Dec. 31, 2024, down from $1.99 billion as of Dec. 31, 2023.
Pentair recently hiked its dividend by 9% to 25 cents per share. This marks the 49th consecutive year that the company has increased its dividend.
PNR repurchased 0.4 million of its shares for $50 million in the fourth quarter. As of Dec. 31, 2024, the company had $450 million available under its share repurchase authorization.
PNR’s 2024 Performance
Pentair reported an adjusted EPS of $4.33 for 2024, which beat the Zacks Consensus Estimate of $4.28 . Earnings were up 15% compared with 2023 earnings of $3.75 per share. Pentair had provided an EPS guidance of $4.27 for 2024. Including one-time items, EPS was $3.74 compared with the $3.75 in 2023.
Net sales dipped 0.5% year over year to $4.1 billion but beat the Zacks Consensus Estimate of $4.08 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales were flat.
Pentair’s Guidance for Q1 & 2025
The company expects adjusted EPS of $4.65-$4.82 for 2025. The mid-point of the range indicates year-over-year growth of 9%. Sales are expected between flat and up 2% on a reported basis from the 2024 level.
For the first quarter, the company expects an adjusted EPS between $1.00 and $1.02. Pentair anticipates the quarter’s sales to decline 3-4% from the year-ago quarter’s figure.
PNR Stock’s Price Performance
The Pentair stock has gained 41.8% over the past year compared with the industry’s 17.1% growth.
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Pentair’s Zacks Rank
Pentair currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pool Stock Awaiting Results
Pool Corp. POOL is expected to release fourth-quarter 2024 results later this month.The Zacks Consensus Estimate for POOL’s earnings is pegged at 89 cents per share, indicating a year-over-year plunge of 31.5%.
The estimate for the company’s top line is pegged at $949.8 million, implying a decrease of 5% from the prior year’s figure. POOL has a trailing four-quarter average earnings surprise of 1.40%.
Other Industrial Products Stocks Awaiting Results
Sonoco SON, scheduled to release fourth-quarter 2024 results on Feb. 18, has a trailing four-quarter average earnings surprise of 1%. The Zacks Consensus Estimate for SON’s earnings is pegged at $1.18 per share, implying year-over-year growth of 15.7%.
The consensus estimate for the company’s top line is pegged at $1.67 billion, indicating a rise of 1.9% from the prior-year figure.
MRC Global MRC is scheduled to report third-quarter fiscal 2025 results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at eight cents per share, implying a 65% plunge from the prior-year level.
The estimate for MRC’s revenues for the quarter is $695 million, indicating a 9.5% decline from the year-ago quarter. The company delivered an average earnings surprise of 60.6% in the past four quarters.
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