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Sep 30, 2022

Pentair Q3 2022 Earnings Report

Pentair reported solid third-quarter results with near double-digit sales growth and strong segment income and adjusted EPS gains, driven by price increases outpacing inflation.

Key Takeaways

Pentair announced third quarter 2022 sales of $1.06 billion, a 9% increase compared to the same period last year. GAAP EPS was $0.70, and adjusted EPS was $0.99. The company has updated its full year 2022 GAAP EPS guidance to approximately $3.01 and adjusted EPS guidance to approximately $3.65.

Third quarter sales reached $1.06 billion.

Third quarter GAAP EPS was $0.70, and adjusted EPS was $0.99.

The company updates its full year 2022 GAAP EPS guidance to approximately $3.01 and on an adjusted basis to approximately $3.65.

Core sales grew 4 percent in the third quarter, excluding currency translation, acquisitions, and divestitures.

Total Revenue
$1.06B
Previous year: $969M
+8.9%
EPS
$0.99
Previous year: $0.89
+11.2%
Gross Profit
$348M
Previous year: $335M
+4.0%
Cash and Equivalents
$119M
Previous year: $173M
-31.4%
Free Cash Flow
$72.2M
Previous year: $165M
-56.2%
Total Assets
$6.51B
Previous year: $4.47B
+45.5%

Pentair

Pentair

Pentair Revenue by Segment

Forward Guidance

The company updates its estimated 2022 GAAP EPS to approximately $3.01 and on an adjusted EPS basis to approximately $3.65. The company updates full year 2022 sales guidance to be up approximately 9 percent on a reported basis. In addition, the company introduces fourth quarter 2022 GAAP EPS guidance of approximately $0.68 and on an adjusted EPS basis of approximately $0.79. The company expects fourth quarter sales to be approximately flat on a reported basis compared to the fourth quarter of 2021.

Positive Outlook

  • Pricing carryover
  • Accretion from Manitowoc Ice
  • Reduced manufacturing inefficiencies that have been an ongoing issue in 2022
  • Transformation initiatives gaining momentum
  • Well positioned to grow next year

Challenges Ahead

  • Acceleration of inventory correction in residential channels
  • Headwinds from foreign exchange
  • Higher interest rates
  • Volumes to continue to moderate for the next few quarters
  • Given the acceleration of inventory correction in our residential channels, coupled with headwinds from foreign exchange and higher interest rates, we expect volumes to continue to moderate for the next few quarters.