Morningstar | Pentair Issues Disappointing Preliminary 1Q Results; Modestly Trimming FVE. See Updated Analyst Note from 09 Apr 2019
We are lowering our fair value estimate for narrow-moat Pentair to $43 from $44 per share after the firm issued preliminary first-quarter 2019 results, warning that earnings will fall short of consensus estimates. The company now expects first-quarter revenue of $689 million (a 6% year-over-year decline) and adjusted earnings of $0.43 per share (well below the previously issued guidance range of $0.52-$0.55 per share).Management blamed the disappointing results on adverse weather conditions, which had a significant impact on sales in the aquatic solutions segment as well as the agriculture end market. Furthermore, the company was affected by softening growth in several end markets and inventory build-up in distribution channels. As a result, management lowered its adjusted earnings per share guidance for full-year 2019 to $2.30-2.35 per share from a previously issued guidance range of $2.50-2.60 per share.
While the announcement is disappointing, and we modestly trimmed our fair value estimate after updating our model to reflect preliminary first-quarter results, we remain optimistic about Pentair’s prospects as we expect its water business to benefit from favorable long-term trends. We will provide an update on April 17, when the company releases its full first-quarter 2019 results.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.