NYSE$PNR

Pentair PLC · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Pentair reported solid third-quarter results with near double-digit sales growth and strong segment income and adjusted EPS gains, driven by price increases outpacing inflation.

Pentair announced third quarter 2022 sales of $1.06 billion, a 9% increase compared to the same period last year. GAAP EPS was $0.70, and adjusted EPS was $0.99. The company has updated its full year 2022 GAAP EPS guidance to approximately $3.01 and adjusted EPS guidance to approximately $3.65.

  • Third quarter sales reached $1.06 billion.
  • Third quarter GAAP EPS was $0.70, and adjusted EPS was $0.99.
  • The company updates its full year 2022 GAAP EPS guidance to approximately $3.01 and on an adjusted basis to approximately $3.65.
  • Core sales grew 4 percent in the third quarter, excluding currency translation, acquisitions, and divestitures.

Headline financials

Total Revenue

$1.06B

Previous: $969M+8.9%
EPS (adj)

$0.99

Previous: $0.89+11.2%
Capital Expenditures

-$63.2M

Previous: -$38.6M-63.7%
Free Cash Flow

$52.2M

Previous: $105M-50.3%
Net Income

$115M

Previous: $144M-19.6%
Operating Income

$147M

Previous: $167M-12.1%
Gross Profit

$348M

Previous: $335M+4.0%
Cash & Equivalents

$119M

Previous: $173M-31.4%
Total Assets

$6.51B

Previous: $4.47B+45.5%
Stock-Based Comp

$7.4M

Previous: $4.2M+76.2%

Revenue & EPS history

Pentair · Revenue · Quarterly

$1.06B

Q3 2022+8.9%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Pentair · $609M total across 3 segments · Q3 2023

  • Pool
    $309M
  • Water Solutions
    $299M
  • Corporate & Other
    $400K+33.3%

Forward guidance

The company updates its estimated 2022 GAAP EPS to approximately $3.01 and on an adjusted EPS basis to approximately $3.65. The company updates full year 2022 sales guidance to be up approximately 9 percent on a reported basis. In addition, the company introduces fourth quarter 2022 GAAP EPS guidance of approximately $0.68 and on an adjusted EPS basis of approximately $0.79. The company expects fourth quarter sales to be approximately flat on a reported basis compared to the fourth quarter of 2021.

Tailwinds

  • Pricing carryover
  • Accretion from Manitowoc Ice
  • Reduced manufacturing inefficiencies that have been an ongoing issue in 2022
  • Transformation initiatives gaining momentum
  • Well positioned to grow next year

Headwinds

  • Acceleration of inventory correction in residential channels
  • Headwinds from foreign exchange
  • Higher interest rates
  • Volumes to continue to moderate for the next few quarters
  • Given the acceleration of inventory correction in our residential channels, coupled with headwinds from foreign exchange and higher interest rates, we expect volumes to continue to moderate for the next few quarters.

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 Q3 2022

Historical avgQ3 2022

-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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