Pentair Beats on EPS but GAAP Results Lag
Pentair (NYS: PNR) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pentair met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Margins shrank across the board.
Pentair booked revenue of $865.7 million. The 13 analysts polled by S&P Capital IQ expected revenue of $862.4 million. Sales were 15% higher than the prior-year quarter's $753.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.56. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share on the same basis. GAAP EPS were -$1.36 for Q4 versus $0.46 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 30.6%, 20 basis points worse than the prior-year quarter. Operating margin was 9.3%, 130 basis points worse than the prior-year quarter. Net margin was -15.5%, 2,170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $888.6 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $3.72 billion. The average EPS estimate is $2.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 190 members out of 203 rating the stock outperform, and 13 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Pentair a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pentair is outperform, with an average price target of $39.88.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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