Core Insights - Pentair plc (PNR) has consistently beaten earnings estimates, particularly in the last two quarters, with an average surprise of 3.88% [1][2] - The most recent earnings report showed earnings of $1.08 per share against an expectation of $1.02, resulting in a surprise of 5.88% [2] - The previous quarter also exceeded expectations, reporting $1.09 per share compared to a consensus estimate of $1.07, yielding a surprise of 1.87% [2] Earnings Estimates and Predictions - Recent estimates for Pentair have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [4][7] - The current Earnings ESP for Pentair is +0.55%, suggesting analysts are optimistic about the company's near-term earnings potential [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5][6] Earnings Release Information - Pentair's next earnings report is anticipated to be released on April 22, 2025 [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6]

Core Viewpoint - Pentair plc (PNR) is expected to report first-quarter 2025 results on April 22, with sales estimated at $984.9 million, reflecting a 3.2% decline year-over-year [1] Financial Estimates - The consensus estimate for earnings is $1.01 per share, indicating a 7.5% year-over-year growth despite a 0.9% downward revision in the past 60 days [2] - The earnings estimates for the upcoming quarters are as follows: Q2 at $1.33, E1 at $4.74, and F2 at $5.21, with slight downward revisions noted [2] Earnings Surprise History - Pentair has a history of beating earnings estimates, with an average surprise of 4.6% over the trailing four quarters [3] Earnings Prediction Model - The model indicates a potential earnings beat for Pentair, supported by a positive Earnings ESP of +0.55% and a Zacks Rank of 3 (Hold) [4][6] Segment Performance Insights - The Pool segment is projected to see a 1.5% year-over-year sales increase to $365 million, despite lower volume growth of 2.4% [8] - The Flow segment's revenues are expected to decline by 6.2% to $360 million, impacted by high interest rates affecting residential and agricultural markets [9] - The Water Solutions segment is anticipated to decline by 5.6% to $258 million, with a 4.6% dip in volumes offset by a slight pricing increase [10] Cost and Margin Dynamics - Despite challenges in the Water and Flow segments, Pentair has achieved margin expansion through pricing strategies, cost savings, and transformation initiatives [11] Stock Performance - Pentair's stock has increased by 2.5% over the past year, compared to the industry's growth of 9.4% [12]

Core Viewpoint - Analysts project that Pentair plc (PNR) will report quarterly earnings of $1.01 per share, reflecting a 7.5% increase year over year, while revenues are expected to decline by 3.2% to $984.61 million [1] Earnings Estimates - The consensus EPS estimate has been revised 0.4% lower over the past 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts forecast 'Net Sales- Pool' to reach $370.22 million, indicating a year-over-year increase of 3% [5] - 'Net Sales- Flow' is expected to be $360.38 million, reflecting a decline of 6.2% from the previous year [5] - 'Net Sales- Water Solutions' is projected at $252.61 million, suggesting a decrease of 7.5% year over year [5] Segment Income Estimates - 'Segment income (loss)- Pool' is projected to be $119.57 million, up from $110.80 million a year ago [6] - 'Segment income (loss)- Water Solutions' is expected to reach $56.78 million, compared to $55.60 million last year [6] - 'Segment income (loss)- Flow' is forecasted at $77.92 million, slightly up from $77.30 million in the previous year [6] Stock Performance - Pentair shares have returned -5.8% over the past month, compared to a -4.2% change in the Zacks S&P 500 composite [7] - With a Zacks Rank 3 (Hold), Pentair is expected to perform in line with the overall market in the near future [7]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Pentair plc despite lower revenues, with a focus on how actual results will compare to estimates to influence stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected on April 22, 2025, with a consensus EPS estimate of $1.01, reflecting a +7.5% year-over-year change, while revenues are projected at $984.46 million, down 3.2% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.35% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is higher than the consensus, resulting in a positive Earnings ESP of +0.64%, indicating a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - Pentair has a history of beating consensus EPS estimates, having done so in the last four quarters, with a notable surprise of +5.88% in the last reported quarter [12][13]. Conclusion - Pentair is viewed as a strong candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [14][16].

Group 1 - The options market indicates significant implied volatility for Pentair PLC, particularly for the May 16, 2025 $70.00 Call option, suggesting that investors expect a substantial price movement [1] - Implied volatility reflects market expectations of future stock movement, indicating potential upcoming events that could lead to a major price change [2] - Pentair currently holds a Zacks Rank 3 (Hold) in the Waste Removal Services industry, which is in the bottom 28% of the Zacks Industry Rank, with a slight decrease in the Zacks Consensus Estimate for the current quarter from $1.02 to $1.01 per share over the last 60 days [3] Group 2 - The high implied volatility may signal a developing trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility to benefit from time decay [4]

Company Overview - Pentair plc (PNR) shares increased by 10.3% to $84.03 in the last trading session, following a strong market recovery after President Trump's announcement regarding a temporary halt on reciprocal tariffs for most countries [1] - The stock had previously experienced an 11.5% loss over the past four weeks [1] Earnings Expectations - Pentair is expected to report quarterly earnings of $1.01 per share, reflecting a year-over-year increase of 7.5% [2] - Revenue expectations stand at $984.46 million, which is a decrease of 3.2% compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Pentair has been revised marginally lower over the last 30 days, indicating a negative trend in earnings estimate revisions [3] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, suggesting caution in the stock's future performance [3] Industry Comparison - Pentair belongs to the Zacks Waste Removal Services industry, where another company, Casella (CWST), saw a 7.1% increase in its stock price, closing at $111.14 [3] - Casella's consensus EPS estimate for the upcoming report remains unchanged at $0.11, representing a significant year-over-year increase of 1200% [4]

Financial Performance - For the year ended December 31, 2024, consolidated net sales were $4,082.8 million, a decrease of 0.5% compared to $4,104.5 million in 2023[154]. - Gross profit increased to $1,598.8 million, representing 39.2% of net sales, up from 37.0% in 2023, reflecting a 2.2 percentage point increase[154]. - The Flow segment reported net sales of $1,514.0 million, a decrease of 4.3% from $1,582.1 million in 2023, with segment income increasing by 12.7% to $318.1 million[163]. - Water Solutions net sales decreased by 3.9% in 2024, primarily due to a 4.8% decline in volume, despite increased selling prices to mitigate inflation[168]. - Pool segment net sales increased by 6.9% in 2024, driven by a 4.1% increase in volume and higher selling prices[172]. Operational Initiatives - The company implemented a Transformation Program aimed at driving operational excellence and margin expansion, with ongoing costs expected into 2025[152]. - The company expects to continue executing on its key Transformation Program initiatives to drive margin expansion and improve operational performance[152]. - The company identified specific product and geographic market opportunities for growth, focusing on research and development investments[153]. Cost and Pricing Strategies - Inflationary cost increases for raw materials and logistics were noted, prompting the company to take pricing actions across all segments[153]. - Flow segment income increased by 3.2 percentage points as a percentage of net sales in 2024 compared to 2023, driven by productivity improvements and partially offset by inflationary cost increases[166]. - Water Solutions segment income increased by 1.6 percentage points as a percentage of net sales in 2024, supported by productivity gains[170]. - Pool segment income increased by 2.2 percentage points as a percentage of net sales in 2024, despite inflationary cost pressures[174]. Cash Flow and Liquidity - Cash provided by operating activities of continuing operations was $766.9 million in 2024, up from $620.8 million in 2023[180]. - Free cash flow from continuing operations was $693.1 million in 2024, reflecting strong cash generation capabilities[189]. - As of December 31, 2024, total availability under the Senior Credit Facility was $890.5 million, providing significant liquidity for future operations[191]. Debt and Financial Obligations - The Term Loan Facility has an aggregate principal amount of $1.0 billion, with a maturity date of July 28, 2027, and required quarterly installment payments starting at $6.3 million, increasing to $12.5 million in 2024[192]. - As of December 31, 2024, the remaining obligation on the Term Loan Facility is $825.0 million, with no further quarterly installment payments required after 2024[192]. - Total contractual obligations amount to $2,223.0 million, with $156.7 million due in the next twelve months[204]. - The company has variable interest rate debt of $843.8 million at a weighted average interest rate of 5.84% as of December 31, 2024[205]. Shareholder Returns - The company repurchased 1.6 million ordinary shares for $150.0 million during the year ended December 31, 2024, leaving $450.0 million available for future repurchases[197]. - A regular quarterly cash dividend of $0.25 per share was approved, reflecting a 9% increase from the previous year, with total dividends paid per ordinary share of $0.92 in 2024[198]. Tax and Regulatory Matters - The effective tax rate increased to 13.0% in 2024 from a negative 0.6% in 2023, primarily due to changes in uncertain tax positions[154]. - The total gross liability for uncertain tax positions was estimated at $6.0 million as of December 31, 2024[206]. - The company recorded valuation allowances for deferred tax assets, which may be reduced if future taxable income increases[230]. Market Risks - The company is exposed to market risks including changes in interest rates and foreign currency rates, and uses derivative financial instruments to manage these risks[234]. - A 100 basis point increase in interest rates would result in approximately a $42 million decrease in the fair value of total fixed-rate debt outstanding as of December 31, 2024[236]. - A 10% appreciation or depreciation of the U.S. dollar relative to the Euro would result in a change in accumulated other comprehensive income of approximately $68 million[241].

Core Insights - Pentair plc reported fourth-quarter 2024 adjusted EPS of $1.08, exceeding the Zacks Consensus Estimate of $1.02 and improving 24% from $0.87 in the prior year [1] - The company’s net sales declined 1.2% year over year to $973 million but surpassed the Zacks Consensus Estimate of $970 million [2] - For the full year 2024, adjusted EPS was $4.33, beating the Zacks Consensus Estimate of $4.28 and reflecting a 15% increase from $3.75 in 2023 [11] Financial Performance - Including one-time items, EPS was $0.99 compared to $1.25 in the prior-year quarter [2] - Cost of sales decreased 4% year over year to $595 million, while gross profit increased 3% to $378 million, resulting in a gross margin of 38.8% [3] - SG&A expenses fell 8.5% to $161 million, and R&D expenses declined 7.2% to $21.8 million [3] Operating Metrics - Operating income rose 17% year over year to $195 million, with an operating margin of 20.1% compared to 17.0% in the previous year [4] - Adjusted segmental operating income increased 17% to $231 million, with an adjusted segmental margin of 23.8% [4] Segment Performance - Flow segment net sales were $361 million, down 4.7% year over year, but adjusted operating earnings rose 13% to $73.6 million [5] - Water Solutions segment net sales decreased 4.3% to $258 million, with earnings increasing to $62 million from $52 million [6] - Pool segment net sales increased 5% to $354 million, with operating earnings growing 13.6% to $119 million [7] Cash Flow and Balance Sheet - Cash and cash equivalents were approximately $119 million at the end of 2024, down from $170 million at the end of 2023 [8] - Net cash generated from operating activities was $767 million in 2024, compared to $621 million in the prior year [8] - Long-term debt decreased to $1.64 billion from $1.99 billion year over year [8] Shareholder Returns - Pentair increased its dividend by 9% to $0.25 per share, marking the 49th consecutive year of dividend increases [9] - The company repurchased 0.4 million shares for $50 million in the fourth quarter, with $450 million remaining under its share repurchase authorization [9] Guidance - For 2025, Pentair expects adjusted EPS between $4.65 and $4.82, indicating a year-over-year growth of 9% [12] - For Q1 2025, the company anticipates adjusted EPS between $1.00 and $1.02, with sales expected to decline 3-4% from the previous year [12] Stock Performance - Pentair's stock has gained 41.8% over the past year, outperforming the industry growth of 17.1% [13]

Q4 2024 EARNINGS RELEASE FEBRUARY 4, 2025 - Picture to be updated Forward-Looking Statements This presentation contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets," "plans," "believes," "expects," "intends," "will," "likely," "may," ...

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