NYSE$PNR

Pentair PLC · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Pentair reported fourth quarter and full year results, with sales increasing and EPS exceeding expectations.

Pentair's Q4 2021 saw a 24% increase in sales to $989 million and GAAP EPS of $0.89. The company's full-year sales reached $3.76 billion, with a GAAP EPS of $3.32. The company also introduces 2022 GAAP EPS guidance of approximately $3.54 to $3.64 and on an adjusted basis of approximately $3.70 to $3.80.

  • Fourth quarter sales reached $989 million, a 24% increase year-over-year.
  • Full year 2021 sales amounted to $3.76 billion, up 25% compared to the previous year.
  • Fourth quarter GAAP EPS was $0.89, while adjusted EPS was $0.87.
  • Full year 2021 GAAP EPS was $3.32, with an adjusted EPS of $3.40.

Headline financials

Total Revenue

$989M

Previous: $796M+24.2%
EPS (adj)

$0.87

Previous: $0.70+24.3%
Capital Expenditures

$21.6M

Previous: $17.8M+21.3%
Free Cash Flow

$557M

Previous: $512M+8.7%
Net Income

$149M

Previous: $103M+44.4%
Operating Income

$151M

Previous: $122M+24.0%
Gross Profit

$328M

Previous: $284M+15.8%
Cash & Equivalents

$94.5M

Previous: $82.1M+15.1%
Total Assets

$4.75B

Previous: $4.2B+13.3%
Stock-Based Comp

$9M

Previous: $5.1M+76.5%

Revenue & EPS history

Pentair · Revenue · Quarterly

$989M

Q4 2021+24.2%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
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 introduces 2022 GAAP EPS guidance of approximately $3.54 to $3.64 and on an adjusted basis of approximately $3.70 to $3.80. The Company anticipates full year 2022 sales to be up approximately 6 to 9 percent on a reported basis. The Company expects to deliver full year free cash flow approximately equal to 100 percent of net income.

Tailwinds

  • Residential businesses benefit from installed base and strong order trends.
  • Commercial demand continues to improve, a positive indicator for Water Treatment business.
  • Industrial facing businesses saw improved orders and backlog, building confidence in further growth.
  • Well positioned for 2022 due to agility and ability to navigate challenging environment.
  • Expects to deliver full year free cash flow approximately equal to 100 percent of net income.

Headwinds

  • Continued uncertainty around COVID-19 impacts.
  • Global supply chain instability.
  • Impact of virus variants and the effectiveness of vaccinations
  • Inflation
  • Seasonality of sales and weather conditions

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 Q4 2021

Historical avgQ4 2021

-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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