Pentair (NYSE: PNR) reported Q3 EPS of $0.70, $0.19 better than the analyst estimate of $0.51. Revenue for the quarter came in at $799 million versus the consensus estimate of $678.35 million.

• Third quarter sales of $799 million.
• Third quarter GAAP EPS of $0.66 and adjusted EPS of $0.70.
• Net cash provided by operating activities in the first nine months was $501 million and free cash flow was $457 million.
• The company updates its full year 2020 GAAP EPS guidance to approximately $2.05 to $2.10 and on an adjusted basis to approximately $2.35 to $2.40.

CEO’s Remarks

John L. Stauch, President and CEO, stated, “Our ability to deliver double digit sales and earnings growth in the quarter is a reflection of our diverse portfolio that includes a large mix of residential focused businesses that are currently experiencing strong demand.”

“Our Consumer Solutions segment delivered strong growth in the quarter led by strength in residential markets, particularly our Pool business. Our Industrial & Flow Technologies segment continues to be negatively impacted by delayed capital spending globally across its commercial and industrial markets, however, the business has shown stabilization as the year has progressed. We generated strong cash flow during the quarter and our balance sheet ended the quarter in excellent shape.”

“We believe we remain well positioned to navigate our way through these uncertain times. Furthermore, we continue to invest in our digital infrastructure and innovation throughout the company and specifically in our Consumer Solutions segment to position ourselves for an eventually strengthened economy. We believe there are ample organic and inorganic opportunities to build on our already strong foundation and we are in a great financial position to support our longer-term aspirations.”

“I would especially like to express my gratitude to our front-line employees for their personal commitment to our customers and shareholders during these times.”

GUIDANCE:

Pentair sees FY2020 EPS of $2.35-$2.40, versus the consensus of $2.22. Pentair sees FY2020 revenue of $2.95 billion, versus the consensus of $2.83 billion.

The company updates its estimated 2020 GAAP EPS of approximately $2.05 to $2.10 and on an adjusted EPS basis of approximately $2.35 to $2.40. The company updates full year 2020 sales guidance of approximately $2.95 billion. The company expects full year free cash flow of greater than 100 percent of net income.

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