## Pentair Earnings Preview: What to Expect on October 22nd
Investors are eagerly anticipating Pentair’s upcoming quarterly earnings report, scheduled for Tuesday, October 22nd. The global water treatment leader is expected to report an earnings per share (EPS) of $1.07, according to analyst estimates. Beyond the headline figure, investors will be closely watching for signs of exceeding expectations and positive guidance for the coming quarter. Strong guidance can be a key driver of stock price movements, making it a crucial factor for investors to consider.
A Look Back at Pentair’s Recent Performance
In the previous quarter, Pentair surprised investors with an EPS beat of $0.08, exceeding analyst expectations. However, the stock price experienced a 3.89% drop the following day. This highlights the volatility that can follow earnings reports, even with positive results. Here’s a breakdown of Pentair’s recent performance and the resulting stock price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $1.14 | $1.22 | -4.0% |
| Q1 2024 | $0.90 | $0.94 | 1.0% |
| Q4 2023 | $0.86 | $0.87 | 0.0% |
| Q3 2023 | $0.87 | $0.94 | -4.0% |
Positive Long-Term Trends
Shares of Pentair were trading at $99.04 as of October 18th. Over the past 52 weeks, the stock has climbed a significant 65.72%. This strong performance suggests a bullish sentiment among long-term shareholders heading into the earnings release.
Analyst Sentiment and Expectations
Understanding market sentiment and industry expectations is crucial for any investor. The consensus rating for Pentair among analysts is ‘Outperform,’ based on 11 ratings. The average one-year price target is set at $102.18, implying a potential upside of 3.17%.
Comparing Pentair to its Peers
To gain further insights into Pentair’s market positioning, it’s helpful to compare its performance with that of its industry peers. Here’s a breakdown of analyst ratings and average one-year price targets for Stanley Black & Decker, IDEX, and Snap-on:
*
Stanley Black & Decker:
Neutral rating, average 1-year price target of $102.27 (3.26% upside)*
IDEX:
Outperform rating, average 1-year price target of $233.17 (135.43% upside)*
Snap-on:
Outperform rating, average 1-year price target of $327.6 (230.78% upside)Key Performance Metrics Comparison
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Pentair | Outperform | 1.55% | $437.90M | 5.51% |
| Stanley Black & Decker | Neutral | -3.23% | $1.14B | -0.13% |
| IDEX | Outperform | -4.61% | $366.80M | 3.89% |
| Snap-on | Outperform | -1.06% | $587.80M | 4.67% |
Key Takeaways:
* Pentair leads its peers in revenue growth and gross profit margin.
* However, it lags behind in terms of return on equity.
Understanding Pentair’s Business
Pentair is a global leader in the water treatment industry, employing over 10,000 people across 25 countries. The company operates in three key segments: pool, water technologies, and flow. Pentair provides a diverse range of water solutions, including energy-efficient swimming pool equipment, filtration systems, and commercial and industrial pumps. In 2023, Pentair generated approximately $4.1 billion in revenue.
A Deeper Look into Pentair’s Financial Story
*
Market Capitalization:
Pentair’s market capitalization is below the industry average, suggesting it is a relatively smaller company compared to its peers. This could be attributed to factors such as its perceived growth potential or operational scale.*
Revenue Growth:
Pentair achieved an impressive revenue growth rate of 1.55% as of June 30, 2024. However, this growth rate falls short of the average for companies in the Industrials sector.*
Net Margin:
Pentair demonstrates strong profitability with an exceptional net margin of 16.93%, exceeding industry averages. This indicates efficient cost management practices.*
Return on Equity (ROE):
Pentair’s ROE of 5.51% surpasses industry averages, highlighting effective use of equity capital and strong financial performance.*
Return on Assets (ROA):
Similar to its ROE, Pentair’s ROA of 2.8% exceeds industry averages, showcasing efficient use of assets and robust financial health.*
Debt Management:
Pentair maintains a below-average debt-to-equity ratio of 0.55, indicating a balanced and prudent approach to debt management.Stay Informed with Pentair’s Earnings Calendar
To stay up-to-date on all earnings releases for Pentair, visit the dedicated earnings calendar on our site. Be sure to check back regularly for the latest news and analysis.