LONDON – Pentair plc (NYSE: PNR), a global leader in water purification and sustainable solutions, reported a slight increase in first-quarter adjusted earnings per share (EPS) but a marginal decrease in sales compared to the same period last year.
The company reported adjusted EPS of $0.94 for the first quarter of 2024, beating analyst expectations by $0.04 and improving from the $0.91 reported in the first quarter of 2023. However, sales fell 1% year over year to $1.0 billion, falling just short of the consensus estimate of $1.01 billion.
President and CEO John L. Stauch underlined the company’s strong start to the year, attributing the strong results to Pentair’s balanced water portfolio and expressing satisfaction with the normalization of order rates and backlog. Stauch also noted that the company remains on track with its Transformation initiatives, which aim to achieve a 24 percent return on sales target by the end of fiscal 2026.
Despite the slight revenue decline, Pentair’s operating income for the quarter was $181 million, and its return on sales (ROS) remained at the same level as in the first quarter of 2023 at 17.8 percent. Item-adjusted ROS increased 90 basis points to 21.4 percent. Segment revenue also showed growth; Although sales fell 2 percent, revenue from the Flow sales segment increased 19 percent. Water Solutions sales were flat, but segment revenue increased 6 percent and Pool sales decreased 1 percent and segment revenue decreased 5 percent.
Looking forward, Pentair updated its 2024 GAAP EPS expectation to a range of $3.76 to $3.86 and reiterated its adjusted EPS expectation of approximately $4.15 to $4.25, in line with the $4.20 consensus. The company expects full-year sales to increase 2 to 3 percent on a reported basis.
The company announced its GAAP EPS expectation for the second quarter of 2024 as approximately $1.08 to $1.10 and its adjusted EPS expectation as approximately $1.15 to $1.17. Second quarter sales are expected to increase by 1 to 2 percent compared to the same quarter last year.
In his closing remarks, Stauch reiterated the company’s full-year outlook and announced strong second-quarter expectations reflecting solid execution across all segments. He emphasized Pentair’s commitment to long-term growth and confidence in the company’s balanced water portfolio and transformation initiatives.