LONDON - Pentair plc (NYSE: NYSE:PNR), a global leader in water treatment and sustainable solutions, reported a slight beat in first-quarter adjusted earnings per share (EPS) but experienced a marginal decline in sales compared to the same period last year.
For the first quarter of 2024, the company announced adjusted EPS of $0.94, surpassing analyst expectations by $0.04 and improving from the $0.91 reported in the first quarter of 2023. However, sales dipped to $1.0 billion, down 1% from the previous year and just below the consensus estimate of $1.01 billion.
President and CEO John L. Stauch highlighted the company's robust start to the year, attributing the strong results to Pentair's balanced water portfolio and expressing satisfaction with the normalization of order rates and backlogs. Stauch also noted the on-track progress of the company's Transformation initiatives, which aim to achieve a return on sales goal of 24 percent by the end of fiscal 2026.
Despite the slight revenue decline, Pentair's operating income for the quarter was $181 million, with a return on sales (ROS) of 17.8 percent, maintaining the level from the first quarter of 2023. Adjusted for certain items, the ROS expanded by 90 basis points to 21.4 percent. Segment income also saw growth, with the Flow sales segment increasing by 19 percent in income, though sales were down 2 percent. Water Solutions sales remained flat, but segment income rose by 6 percent, and Pool (NASDAQ:POOL) sales decreased by 1 percent with a 5 percent drop in segment income.
Looking ahead, Pentair has updated its full-year 2024 GAAP EPS guidance to a range of $3.76 to $3.86 and reiterated its adjusted EPS guidance of approximately $4.15 to $4.25, aligning with the consensus of $4.20. The company expects full-year sales to increase by 2 to 3 percent on a reported basis.
For the second quarter of 2024, the company is introducing GAAP EPS guidance of approximately $1.08 to $1.10 and adjusted EPS guidance of about $1.15 to $1.17. Second-quarter sales are anticipated to rise by 1 to 2 percent compared to the same quarter last year.
In his concluding remarks, Stauch reiterated the company's full-year outlook and introduced strong second-quarter guidance, 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.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.