Shares in water technology and pool products company Pentair (PNR 8.81%) surged by 10.7% in early morning trading on Tuesday. This kind of performance might be expected in the current environment, whereby merely maintaining full-year guidance is a major positive.In addition, management served notice that its transformational initiatives are working and continuing to expand profit margins even as sales declined.Pentair's transformation continuesGoing into 2025, the investment thesis around the stock this yea ...

Core Viewpoint - Pentair plc reported quarterly earnings of $1.11 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing an increase from $0.94 per share a year ago, representing an earnings surprise of 9.90% [1][2] Financial Performance - The company achieved revenues of $1.01 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.68%, although this is a slight decrease from year-ago revenues of $1.02 billion [2] - Over the last four quarters, Pentair has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Pentair shares have declined approximately 21.5% since the beginning of the year, compared to a decline of 12.3% for the S&P 500 [3] - The current Zacks Rank for Pentair is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $1.11 billion, and for the current fiscal year, it is $4.73 on revenues of $4.12 billion [7] - The trend of estimate revisions for Pentair is currently mixed, which may change following the recent earnings report [6] Industry Context - The Waste Removal Services industry, to which Pentair belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Pentair PLC (PNR) Q1 2025 Earnings Conference Call April 22, 2025 09:00 AM ET Company Participants Jeff Hammond - Puddle MarketsShelly Hubbard - Vice President of Investor RelationsBrian Blair - OppenheimerBob Fishman - Chief Financial OfficerOperator - Conference Call OperatorAndrew Curl - Deutsche BankScott Graham - Seaport Research PartnersJoe Giordano - TD CallenModerator - Conference Call ModeratorNick Cash (on behalf of Brian Lee) - Goldman SachsDean Dre - RBC Capital MarketsJohn Stouck - President an ...

Financial Performance - First quarter 2025 sales were $1.0 billion, down 1% year-over-year; core sales also declined 1% excluding currency translation, acquisitions, and divestitures[3] - First quarter 2025 diluted EPS increased 16% to $0.93 compared to $0.80 in the first quarter of 2024; adjusted EPS rose 18% to $1.11[3][7] - Operating income for the first quarter 2025 was $203 million, a 12% increase from the prior year, with a return on sales (ROS) of 20.1%, up 230 basis points[4][7] - Net income for Q1 2025 was $154.9 million, an increase of 16.3% compared to $133.3 million in Q1 2024[24] - Total net sales for Q1 2025 were $1,010.4 million, a slight decrease of 0.8% from $1,017.2 million in Q1 2024[28] - The adjusted operating income for Q1 2025 was $242.5 million, up 11.6% from $217.3 million in Q1 2024[28] - The diluted earnings per share as reported for Q1 2025 was $0.93, with an adjusted diluted earnings per share of $1.11[30] Guidance and Expectations - Full year 2025 GAAP EPS guidance was updated to approximately $4.27 to $4.42, reflecting a 14% to 18% increase compared to 2024[11] - Second quarter 2025 GAAP EPS guidance is approximately $1.24 to $1.28, up 12% to 15% year-over-year[12] - The company maintained its estimated full year 2025 sales growth of flat to up approximately 2% on a reported basis[11] - The company expects full-year net sales to be flat to up 2% compared to 2024[30] Cash Flow and Capital Management - Free cash flow used for continuing operations was $56 million in the first quarter, down from $127 million in the same period last year[8] - Free cash flow from continuing operations for Q1 2025 was $(55.7) million, an improvement from $(126.7) million in Q1 2024[26] - The company experienced a net cash inflow from financing activities of $87.1 million in Q1 2025, compared to $63.2 million in Q1 2024[24] - Capital expenditures for Q1 2025 were $16.8 million, down from $19.3 million in Q1 2024[24] Segment Performance - Water Solutions sales decreased by 5% year-over-year, while Pool sales increased by 7%[6][7] - The Pool segment reported a net sales increase of 6.8% in Q1 2025, reaching $383.9 million compared to $359.5 million in Q1 2024[32] - The return on sales for the Flow segment increased to 22.7% in Q1 2025 from 20.1% in Q1 2024[28] Shareholder Returns - The company repurchased $50 million of ordinary shares and increased its dividend for the 49th consecutive year, paying $0.25 per share[7][9] Asset Management - Current assets increased to $1,727.1 million as of March 31, 2025, compared to $1,436.1 million at the end of 2024[22]

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]