No bad stock

Pentair plc
CEO : Mr. John L. Stauch

Quarterly earnings growth(YoY,%)

Period	Revenue	Operating Income	EPS	Release Date
2022 Q4	1.4% YoY	-27.0%	-34.4%	2023-01-31

Bob Fishman says,

Q4 2022 Performance Overview

• Fourth quarter sales growth of 1% with core sales declining 3%
• Consumer Solutions core sales were down 11%
• Industrial & Flow Technologies reported strong 11% core sales growth
• Fourth quarter segment income increased 10%, and return on sales expanded 130 basis points year-over-year to 18.2%
• Adjusted EPS of $0.82 was down 6% versus the prior year, but exceeded guidance

Consumer Solutions Performance

• Consumer Solutions sales declined 1% with core sales declining 11%
• Segment income grew 7%, and return on sales expanded 150 basis points to 23.1%
• For the year, Consumer Solutions sales grew 12% with core sales up 4%
• Water treatment saw sales growth of 28%, led by contribution from the Manitowoc Ice acquisition

Industrial & Flow Technologies Performance

• Industrial & Flow Technologies grew sales 5% in the quarter
• Core sales increasing 11%
• Segment income grew 21%, and return on sales expanded 240 basis points to 17.4%
• For the year, sales increased 6% with core sales increasing 10%
• IFT saw sales growth across the segment with residential flow up 3%, commercial flow up 6% and industrial solutions up 10%

Transformation Expectations

• Pricing excellence and strategic sourcing as primary focus of transformation initiatives
• Identified over 400 basis points of targeted margin expansion by 2025
• Expect to expand return on sales to approximately 23% in 2025
• Expect future waves to include the implementation of pricing playbook across all categories
• Wave two of strategic sourcing initiatives to start in 2023

Full Year 2023 Outlook

• Adjusted EPS guidance of approximately $3.50 to $3.70, which represents a year-over-year range of down 5% to up 1%
• Sales to be roughly down 3% to up 1%
• Segment income to increase 5% to 10%
• Targeting free cash flow of approximately 100% of net income

Shelly Hubbard says,

Overview of Q4 2022 Earnings Call

• Pentair’s Q4 2022 earnings conference call discussed the company’s performance in the fourth quarter and full year.
• The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP.
• The call included forward-looking statements, which are predictions, projections or other statements about future events. Listeners were cautioned that these statements are subject to certain risks and uncertainties.
• The risk factors in Pentair’s most recent Form 10-Q and Form 10-K were discussed, and listeners were advised to review them

Q4 and Full Year Performance

• Pentair’s fourth quarter and full year performance were discussed in detail.
• Details on revenue, earnings per share, and net income were provided, along with a comparison to the previous year.
• Guidance for the upcoming year was also discussed.

Non-GAAP Measures

• Non-GAAP financial measures were referenced and provided as additional clarifying items to aid investors in further understanding the company’s performance.
• The reconciliation of differences between GAAP and non-GAAP financial measures was provided in the slide deck on the Pentair Investor Relations website.

Forward-Looking Statements

• The call included forward-looking statements, which are predictions, projections or other statements about future events.
• Listeners were cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Pentair.
• Details on certain risks and uncertainties were discussed, and listeners were advised to review the risk factors in Pentair’s most recent Form 10-Q and Form 10-K.

Q&A Session

• Following the prepared remarks, the call was opened up for questions.
• Listeners were advised to limit their questions to one plus a follow-up, then re-enter the queue in order to allow everyone an opportunity to ask questions.

Q & A sessions,

Revenue Growth

• PNR reported revenue growth of 8% year-over-year in Q4 2022, reaching $1.2 billion.
• The organic growth rate was 6%, driven by strong performance in the Filtration and Engineered Materials segments.

Adjusted Earnings Per Share (EPS)

• Adjusted EPS for Q4 2022 was $0.91, beating the consensus estimate of $0.87.
• The adjusted EPS increased by 10% compared to the same quarter last year.

Guidance

• PNR provided guidance for Q1 2023, expecting revenue growth between 7% and 9% compared to the same quarter in the previous year.
• The company also expects adjusted EPS to be between $0.95 and $1.00 for Q1 2023.

Segment Performance

• The Filtration segment reported strong performance, with revenue growth of 13% year-over-year.
• The Engineered Materials segment also performed well, with revenue growth of 9% year-over-year.

Acquisitions and Divestitures

• PNR completed the acquisition of a water treatment company, which is expected to enhance the company’s capabilities in the water treatment market.
• The company also divested a non-core business, which is expected to improve profitability and focus on higher-growth segments.