The chart below shows how PNR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PNR sees a -2.16% change in stock price 10 days leading up to the earnings, and a +1.56% change 10 days following the report. On the earnings day itself, the stock moves by +2.41%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q4 EPS Exceeds Expectations: Pentair reported adjusted EPS of $1.08 for Q4 2024, exceeding expectations of $1.02, marking a 24% increase year-over-year.
Record Operating Income Growth: The company achieved record adjusted operating income of $231 million in Q4 2024, reflecting a 17% increase compared to the previous year.
Record Return on Sales: Pentair's return on sales (ROS) expanded by 370 basis points to a record 23.8% in Q4 2024, driven by successful Transformation initiatives.
Record Free Cash Flow: For the full year 2024, Pentair generated record free cash flow of $693 million, representing a nearly 26% increase year-over-year.
Dividend Increase Announcement: The company increased its dividend by approximately 9% for 2025, marking the 49th consecutive year of dividend increases, reinforcing its status as a dividend aristocrat.
Negative
Q4 Sales Decline: Sales for Q4 were down 1%, indicating a slight decline despite better-than-expected performance in Pool sales.
Sales Decline Analysis: Flow sales decreased 5% to $361 million in Q4, with residential sales down due to higher interest rates and industrial solutions impacted by delayed CapEx spend.
Water Solutions Sales Decline: Water Solutions sales decreased 4% to $258 million in Q4, with commercial sales down 5%, primarily due to a decline in commercial ice sales.
Sales Performance Overview: For the full year, sales were down 1% at $4.1 billion, with core sales flat, driven by growth in Pool, which offset lower Flow and Water Solutions sales.
Sales Expectations for 2025: Expectations for 2025 include total Pentair sales to be approximately flat to up 2%, with Water Solutions sales expected to decline low-single-digits, indicating ongoing challenges in that segment.
Pentair plc (NYSE:PNR) Q4 2024 Earnings Call Transcript
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