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Jun 30, 2023
Pentair Q2 2023 Earnings Report
Pentair reported strong second quarter 2023 results with sales up 2% and increased full year EPS guidance.
Key Takeaways
Pentair's second quarter 2023 results showcased a 2% increase in sales to $1.1 billion. Operating income rose by 9% to $209 million, and adjusted EPS increased by 1% to $1.03. The company also increased its full year 2023 GAAP EPS guidance to approximately $3.27 to $3.37 and on an adjusted basis to approximately $3.65 to $3.75.
Sales of $1.1 billion, up 2 percent compared to sales for the same period last year.
Operating income increased 9 percent to $209 million reflecting ROS of 19.3 percent.
GAAP EPS from continuing operations increased 1 percent to $0.93 compared to the same period last year and adjusted EPS rose 1 percent to $1.03 compared to the same period last year.
Free cash flow provided by continuing operations for the quarter was $433 million, an increase of $144 million compared to the same period last year.
Pentair
Pentair
Pentair Revenue by Segment
Revenue by Segment
Water Solutions Revenue
CapyFin.comPool Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
Pentair increases its estimated 2023 GAAP EPS from continuing operations to approximately $3.27 to $3.37 and on an adjusted EPS basis to approximately $3.65 to $3.75. The company maintained full year 2023 sales guidance to be down approximately 2 percent to flat on a reported basis. The company expects full year free cash flow to approximate 100 percent of net income. In addition, the company introduces third quarter 2023 GAAP EPS from continuing operations guidance of approximately $0.77 to $0.82 and on an adjusted EPS basis of approximately $0.84 to $0.89. The company expects third quarter sales to be down approximately 7 percent on a reported basis compared to the third quarter of 2022.
Positive Outlook
- Company increases its full year 2023 GAAP EPS guidance to approximately $3.27 to $3.37
- Adjusted EPS guidance to approximately $3.65 to $3.75.
- Company maintained full year 2023 sales guidance to be down approximately 2 percent to flat on a reported basis.
- Company expects full year free cash flow to approximate 100 percent of net income.
- Company introduces third quarter 2023 GAAP EPS from continuing operations guidance of approximately $0.77 to $0.82 and on an adjusted EPS basis of approximately $0.84 to $0.89.
Challenges Ahead
- Company expects third quarter sales to be down approximately 7 percent on a reported basis compared to the third quarter of 2022.
- Challenging macroeconomic environment with higher interest rates and inflation.
- Expect 2023 to be a softer year for Pool sales due to lower demand in new pools
- Channel inventory correction
- Continue to operate in a challenging macroeconomic environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income