Pentair is expected to announce its second quarter results on July 27th
Pentair PLC (NYSE: PNR) is primarily an American water treatment company. The company operates in its water and electrical businesses, with a focus on residential, commercial, industrial, municipal and infrastructure applications, as well as agricultural applications. Pentair employs around 9,750 people worldwide who serve customers in more than 150 countries.
Pentair stock is up about 65% year over year. Additionally, PNR’s shares are up 32% year-to-date and are currently trading just below the July 13th record high of $ 71.00. The stock saw a strong rebound from its 100-day moving average late last month, with more immediate support from the 10-day moving average. Pentair stock also has a forward dividend of $ 0.80 and a dividend yield of 1.14%.
Pentair announced this week that it will publish its second quarter financial results ahead of market opening on Tuesday, July 27th. PNR will also host a conference call with investors that day. Pentair has significantly outperformed Wall Street earnings expectations in all four of its most recent earnings reports. For the second quarter of 2020, Pentair beat estimates by a margin of $ 0.10 and reported earnings per share (EPS) of $ 0.59. PNR’s earnings per share rose to $ 0.70 in the third quarter of 2020, beating expectations by $ 0.19. For the fourth quarter of 2020, Pentair kept earnings at $ 0.70 per share, beating estimates with a margin of $ 0.07. For the first quarter of 2021, Pentair reported earnings per share of $ 0.81, beating expectations by $ 0.19.
From a fundamental point of view, Pentair lacks consistency and stability in many areas. For example, the company’s revenue is down 36% and the company’s net income is down 38% since fiscal 2017. Pentair also has $ 1.02 billion in total debt and only $ 95 million on its balance sheet.
However, the past 12 month numbers of PNR show some signs of progress. Pentair’s last 12 month sales are up 5% and trailing 12 month net income is up nearly 16% compared to reports for 2020. Additionally, Pentair stock has a forward price / earnings ratio of 22.03, which is a significant improvement over the current price / earnings ratio of 28.40. Unfortunately, however, PNR is still very much valued for the amount of instabilities it offers.