- Pentair PLC (NYSE:PNR) reported fourth-quarter net sales growth of 24.2% year-over-year to $988.6 million and core sales growth of 19%, beating the consensus of $943.58 million.
- Consumer Solutions sales were up 31% Y/Y to $630 million, and return on sales was 21.6%, a decrease of 410 bps.
- Industrial & Flow Technologies sales were up 14% Y/Y to $358.3 million and return on sales was 15%, an increase of 440 bps.
- Adjusted EPS improved to $0.87 from $0.70 in 4Q20, beating the consensus of $0.85.
- The gross margin contracted by 240 bps to 33.2%. The operating income increased by 24% Y/Y to $150.7 million, and the margin contracted slightly to 15.2% from 15.3% a year ago.
- Net cash provided by operating activities of continuing operations for FY21 was $613.6 million compared to $574.2 million a year ago, and free cash flow was $556.9 million.
- 1Q22 Outlook: Pentair expects GAAP EPS of $0.76 and adjusted EPS of $0.80 (consensus $0.88) and expects sales to be up ~7% to 11% on a reported basis.
- FY22 Outlook: The company expects GAAP EPS of $3.54 - $3.64 and adjusted EPS of $3.70 - $3.80 (consensus $3.74). Sales are expected to be up ~6% - 9% on a reported basis.
- It expects to deliver a full-year free cash flow equal to 100% of net income.
- Price Action: PNR shares are trading lower by 2.10% at $62.36 on the last check Tuesday.
