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London-based Pentair plc (PNR) is a global leader in water treatment and sustainable solutions, offering a comprehensive range of innovative products and services to address the diverse needs of residential, commercial, and industrial clients worldwide. With a market cap of $16.4 billion, Pentair operates across various markets, providing cutting-edge water filtration, flow management, and environmental solutions. The company is set to release its Q4 earnings on Tuesday, Feb. 4.
Ahead of the event, analysts expect Pentair to report a profit of $1.02 per share, up 17.2% from $0.87 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters.
Its EPS of $1.09 for the last reported quarter exceeded the consensus estimates by 1.9%. Pentair's performance was driven by strong operational execution and sustained demand for water treatment solutions.
Analysts expect Pentair’s EPS to climb 14.1% to $4.28 in fiscal 2024, up from $3.75 in 2023. In fiscal 2025, EPS is projected to increase by 14% annually to $4.88.
Shares of Pentair have gained 42.5% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 24.4% rise and the Industrial Select Sector SPDR Fund’s (XLI) 18.4% returns over the same period.
Despite delivering better-than-expected results, Pentair's shares declined marginally following its Q3 earnings release on Oct. 22. The company reported net sales of $993.4 million, reflecting a 1.5% year-over-year decrease. Operating income reached $180 million with a return on sales of 18.1%, up 20 basis points from the prior-year period. For the fourth quarter, Pentair anticipates sales between $965 million and $975 million.
The consensus opinion on Pentair stock is cautiously optimistic, with a “Moderate Buy” rating overall. Out of the 19 analysts covering the stock, 10 recommend a “Strong Buy,” one advises a “Moderate Buy,” and eight suggest a “Hold” rating.
The average price target for Pentair is $113.61, indicating a 14.2% potential upside from the current price levels.
