- Pentair PLC (NYSE:PNR) reported second-quarter net sales growth of 13% year-over-year to $1.06 billion and core sales growth of 12%, beating the consensus of $1.05 billion.
- Adjusted EPS improved to $1.02 from $0.84 in 2Q21, beating the consensus of $1.00.
- The gross margin contracted by 240 bps to 33.8%, operating income increased 17.9% Y/Y to $190.8 million, and margin expanded by 70 bps to 17.9%.
- Consumer Solutions sales were up 19% Y/Y to $686.2 million, and return on sales was 24.7%, a decrease of 20 bps.
- Industrial & Flow Technologies sales were up 4% Y/Y to $377.4 million and return on sales was 15.7%, flat.
- Net cash provided by operating activities of continuing operations year-to-date was $176.3 million compared to $361 million a year ago, and free cash flow was $138.1 million.
- 3Q22 Outlook: Pentair expects EPS from continuing operations of $0.90 – $0.92 and adjusted EPS of $0.93 – $0.95, vs. the consensus of $0.95.
- It expects sales to be up ~3% to 5% on a reported basis.
- FY22 Outlook: Pentair expects adjusted EPS of $3.70 – $3.75 (prior view $3.70 – $3.80) vs. the consensus of $3.71. It sees sales growth of ~8% to 10% (prior view 9% to 11%) on a reported basis.
- The updated guidance primarily reflects the negative impacts of foreign exchange and higher interest rates in addition to further margin expansion.
- Price Action: PNR shares are trading higher by 1.13% at $47.43 on the last check Tuesday.
Apple Consolidates As The Stock Market Readies For A Bit Move In One Direction: The Bull, Bear Case
Apple, Inc (NASDAQ: AAPL) was trading slightly higher on Tuesday in continued consolidation after trading mostly sideways on Monday.
