Pentair (PNR) Tops Q4 EPS by 3c; Initiates Q1 EPS Guidance Below Consensus, FY20 EPS Mid-Point Guidance Below Consensus

Pentair (NYSE: PNR) reported Q4 EPS of $0.68, $0.03 better than the analyst estimate of $0.65. Revenue for the quarter came in at $755 million versus the consensus estimate of $754.1 million.

• Fourth quarter sales of $755 million; full year 2019 sales of $2.96 billion.
• Fourth quarter GAAP EPS of $0.61 and adjusted EPS of $0.68; full year 2019 GAAP EPS of $2.12 and adjusted EPS of $2.38.

John L. Stauch, Pentair’s President and Chief Executive Officer commented: “We are very pleased to deliver fourth quarter and full year results in line with our expectations. During 2019, we completed two strategic acquisitions that allowed us to move closer to the consumer. We made great strides in accelerating our growth investments around marketing, brand building and innovation.”

“In addition, we finalized a detailed North America segmentation analysis that has provided us information on how consumers make purchase decisions, in essence, codifying the customer journeys with Pentair and our products. This segmentation data helped inform us to re-organize into two reporting segments, Consumer Solutions, which are business-to-consumer related businesses, and Industrial & Flow Technologies, which are primarily business-to-business oriented. This new segment structure is focused on better alignment around our product and service offerings by customer type to maximize the customer experience and drive profitable growth.”

“Despite macro challenges in 2019, we made great progress with respect to our vision to build a high-performance growth culture. Our outlook for 2020 reflects us returning to growth and we continue to have a strong balance sheet to fund our most attractive growth opportunities, both organically and inorganically, while also returning capital to our shareholders. We continue to invest in our top priorities and have made solid progress in further positioning Pentair as a leading water treatment company.”

GUIDANCE:

Pentair sees Q1 2020 EPS of $0.44-$0.47, versus the consensus of $0.51.

Pentair sees FY2020 EPS of $2.50-$2.55, versus the consensus of $2.55.

• The company introduces its 2020 GAAP EPS guidance of $2.36 to $2.41 and on an adjusted basis of $2.50 to $2.55. The company anticipates full year 2020 sales up approximately 1 to 3 percent on a reported basis and up approximately 2 to 4 percent on a core basis. The company expects to deliver full year free cash flow greater than 100 percent of net income.
• In addition, the company introduces first quarter 2020 GAAP EPS from continuing operations guidance of $0.44 to $0.47 and on an adjusted EPS basis of $0.48 to $0.51. The company expects first quarter sales to be up approximately 3 to 5 percent on a reported basis and up approximately 4 to 6 percent on a core basis compared to first quarter 2019.

For earnings history and earnings-related data on Pentair (PNR) click here.

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