Pentair plc (NYSE: PNR), a leader in sustainable water solutions, has announced its financial results for the third quarter of 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $993 million | $1,012 million | -2% | $988.79 million |
| Reported EPS | $0.84 | $0.79 | +6% | N/A |
| Adjusted EPS | $1.09 | $0.94 | +16% | $1.07 |
Pentair reported third quarter 2024 revenues of $993 million, a slight decrease of 2% from the prior year. However, adjusted earnings per share increased by 16% year-over-year to $1.09, exceeding Wall Street's consensus estimate of $1.07.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Year-over-Year Change | Reportable Segment Income | ROS (%) |
|---|---|---|---|---|
| Flow | $X million | -7% | $83 million | 22.2% |
| Water Solutions | $X million | -3% | $64 million | 22.2% |
| Pool | $X million | +7% | $113 million | 34.0% |
The Pool segment showed the strongest performance with a 7% growth compared to the previous year, driven by an 8% increase in core sales. In contrast, Flow and Water Solutions saw declines of 7% and 3%, respectively.
Key Developments and Operational Highlights
- Operating income remained flat at $180 million, but adjusted operating income grew by 13% to $239 million.
- Return on sales improved by 20 basis points to 18.1%; adjusted ROS was up 310 basis points to 24.1%.
- Net cash from operations increased significantly to $249 million, with free cash flow rising to $234 million.
Executive Commentary
John L. Stauch, Pentair's President and CEO, highlighted the company's 'strong execution, transformation initiatives, and balanced water portfolio' as driving factors behind the results. He also emphasized Pentair's commitment to capital allocation, including strengthening the balance sheet, share repurchases, and sustaining its dividend aristocrat status.
Dividends and Share Repurchase
Pentair is maintaining its consistent dividend growth, marking its 48th consecutive year with increased dividends, paying $0.23 per share for the quarter. The company repurchased 0.6 million shares for $50 million, leaving $500 million available under the current authorization.
Forward Guidance
Pentair updated its full-year 2024 GAAP EPS guidance to approximately $3.70 and adjusted EPS to $4.27. Fourth quarter 2024 EPS is projected at $0.95 GAAP and $1.02 adjusted, with expected revenues ranging from $965 million to $975 million, reflecting a slight year-over-year decrease.
Stock Price Movement
Following the earnings release, Pentair's stock price experienced a modest decline of approximately 0.01%.
In conclusion, while Pentair faces some segment-specific challenges, it remains optimistic about its long-term growth strategy and ability to adapt to changing market conditions.
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