NYSE$PNR

Pentair PLC · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Pentair reported strong second quarter 2023 results with sales up 2% and increased full year EPS guidance.

Pentair's second quarter 2023 results showcased a 2% increase in sales to $1.1 billion. Operating income rose by 9% to $209 million, and adjusted EPS increased by 1% to $1.03. The company also increased its full year 2023 GAAP EPS guidance to approximately $3.27 to $3.37 and on an adjusted basis to approximately $3.65 to $3.75.

  • Sales of $1.1 billion, up 2 percent compared to sales for the same period last year.
  • Operating income increased 9 percent to $209 million reflecting ROS of 19.3 percent.
  • GAAP EPS from continuing operations increased 1 percent to $0.93 compared to the same period last year and adjusted EPS rose 1 percent to $1.03 compared to the same period last year.
  • Free cash flow provided by continuing operations for the quarter was $433 million, an increase of $144 million compared to the same period last year.

Headline financials

Total Revenue

$1.08B

Previous: $1.06B+1.7%
EPS (adj)

$1.03

Previous: $1.02+1.0%
Capital Expenditures

-$35.4M

Previous: -$40.1M+11.7%
Free Cash Flow

$118M

Previous: $113M+4.2%
Net Income

$153M

Previous: $153M+0.0%
Operating Income

$209M

Previous: $191M+9.3%
Gross Profit

$400M

Previous: $360M+11.1%
Cash & Equivalents

$142M

Previous: $135M+4.8%
Total Assets

$6.51B

Previous: $4.87B+33.6%
Stock-Based Comp

$6.9M

Previous: $6.3M+9.5%

Revenue & EPS history

Pentair · Revenue · Quarterly

$1.08B

Q2 2023+1.7%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Pentair · $671M total across 3 segments · Q2 2023

  • Water Solutions
    $336M
  • Pool
    $334M
  • Corporate & Other
    $400K-33.3%

Forward guidance

Pentair increases its estimated 2023 GAAP EPS from continuing operations to approximately $3.27 to $3.37 and on an adjusted EPS basis to approximately $3.65 to $3.75. The company maintained full year 2023 sales guidance to be down approximately 2 percent to flat on a reported basis. The company expects full year free cash flow to approximate 100 percent of net income. In addition, the company introduces third quarter 2023 GAAP EPS from continuing operations guidance of approximately $0.77 to $0.82 and on an adjusted EPS basis of approximately $0.84 to $0.89. The company expects third quarter sales to be down approximately 7 percent on a reported basis compared to the third quarter of 2022.

Tailwinds

  • Company increases its full year 2023 GAAP EPS guidance to approximately $3.27 to $3.37
  • Adjusted EPS guidance to approximately $3.65 to $3.75.
  • Company maintained full year 2023 sales guidance to be down approximately 2 percent to flat on a reported basis.
  • Company expects full year free cash flow to approximate 100 percent of net income.
  • Company introduces third quarter 2023 GAAP EPS from continuing operations guidance of approximately $0.77 to $0.82 and on an adjusted EPS basis of approximately $0.84 to $0.89.

Headwinds

  • Company expects third quarter sales to be down approximately 7 percent on a reported basis compared to the third quarter of 2022.
  • Challenging macroeconomic environment with higher interest rates and inflation.
  • Expect 2023 to be a softer year for Pool sales due to lower demand in new pools
  • Channel inventory correction
  • Continue to operate in a challenging macroeconomic environment

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.9%

Avg return

30 days after

41%

28 / 69 earnings

Positive

+13.6%

Q4 2022

Best reaction

-8.5%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-14.3%-23.1%
Q4 2025-5.1%-7.7%-9.0%
Q3 2025-0.2%+0.4%-7.2%
Q2 2025-2.2%-1.8%+1.8%
Q1 2025+9.2%+14.0%+23.7%
Q4 2024-4.3%-4.6%-12.5%
Q3 2024-0.4%+0.6%+7.8%
Q2 2024+4.8%+10.6%+5.4%
Q1 2024-0.3%+1.0%+4.2%
Q4 2023-0.1%+0.8%+6.2%
Q3 2023-7.9%-7.4%+0.7%
Q2 2023+4.1%+4.5%+0.2%
Q1 2023+10.8%+10.4%+9.9%
Q4 2022+13.6%+17.1%+9.4%
Q3 2022+2.6%+4.9%+12.7%
Q2 2022+5.2%+4.2%+3.9%
Q1 2022-3.0%-4.9%-9.9%
Q4 2021-2.2%-6.1%-7.9%
Q3 2021-4.7%-3.8%+0.6%
Q2 2021+3.8%+7.2%+12.0%
Q1 2021-0.1%-0.5%+5.6%
Q4 2020-4.6%-4.6%-2.0%
Q3 2020+3.9%+5.5%+8.1%
Q2 2020-1.0%-1.3%+7.5%
Q1 2020-5.1%-3.1%+11.1%
Q4 2019-2.6%-4.3%-11.7%
Q3 2019+5.6%+5.5%+11.0%
Q2 2019+4.5%+4.3%-3.3%
Q1 2019-5.6%-7.0%-11.0%
Q4 2018+1.6%+1.1%+4.9%
Q3 2018+0.2%+3.4%+9.3%
Q2 2018-2.1%-1.8%-2.9%
Q1 2018-2.0%-6.7%-4.7%
Q4 2017-3.1%-3.5%-9.3%
Q3 2017+0.2%-1.0%-1.8%
Q2 2017-3.4%-2.0%-5.6%
Q1 2017+2.7%+2.0%+5.2%
Q4 2016-4.3%-3.9%-3.3%
Q3 2016-6.0%-6.4%-1.9%
Q2 2016+0.1%-4.1%-0.1%
Q1 2016+6.8%
Q4 2015-2.5%
Q3 2015-2.2%
Q2 2015-4.6%
Q1 2015-5.5%
Q4 2014-1.2%
Q3 2014+0.7%
Q2 2014-8.5%
Q1 2014-6.6%
Q4 2013+2.7%
Q3 2013-0.9%
Q2 2013-0.9%
Q1 2013+8.6%
Q4 2012-5.6%
Q3 2012+8.3%
Q2 2012+4.4%
Q1 2012-1.5%
Q4 2011-1.3%
Q3 2011+1.3%
Q2 2011-7.0%
Q1 2010+1.8%
Q1 2011+1.8%
Q4 2008-2.1%
Q4 2010-2.1%
Q3 2010-7.7%
Q2 2009-7.7%
Q3 2009-7.7%
Q4 2009+0.6%
Q2 2010+0.6%

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