Pentair Q1 Profit Down - Quick Facts

(RTTNews) - Pentair plc (PNR) reported that its net income for the first quarter 2017 declined to $87.8 million and $0.48 per share from $107.4 million and $0.59 per share last year.

First quarter 2017 earnings per share from continuing operations were $0.44 compared to $0.50 in the first quarter of 2016. On an adjusted basis, the company reported EPS of $0.65 compared to $0.61 in the first quarter of 2016.

First quarter 2017 operating income was $138 million, down 9 percent compared to operating income for first quarter of 2016, and return on sales ("ROS") was 11.7 percent, a decrease of 110 basis points when compared to the first quarter of 2016. On an adjusted basis, the company reported segment income of $184 million for the first quarter, up 3 percent compared to segment income for the first quarter of 2016, and ROS was 15.5 percent, an increase of 50 basis points when compared to the first quarter of 2016.

Sales for the first-quarter were $1.2 billion. Sales were down 1 percent compared to sales for the same period last year. Excluding currency translation and acquisitions, core sales declined 1 percent in the first quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share and revenues of $1.14 billion for the quarter. Analysts' estimates typically exclude special items.

In addition, the company introduces second quarter 2017 GAAP EPS guidance range of $0.87 to $0.89 and, on an adjusted EPS basis, a range of $0.97 to $0.99, up approximately 11% on an adjusted EPS basis versus the same quarter last year.

The company expects second quarter revenue to be approximately $1.24 billion, which would be down approximately 5 percent on a reported basis and down approximately 4 percent on a core basis compared to second quarter 2016 revenue.

Analysts expect the company to report earnings of $1.02 per share and revenues of $1.25 billion for the second-quarter.

The company updated its 2017 GAAP EPS to a range of $2.95 to $3.05 and maintains its adjusted EPS range of $3.45 to $3.55 and anticipates full year 2017 sales of $4.8 billion, or down approximately 2 percent on a reported and core basis.

Previously, the company expected annual earnings per share of $3.03 to $3.13, and sales of about $4.7 billion, or down approximately 3 percent on a reported basis and down approximately 3 percent on a core basis.

The company expects to deliver full year free cash flow of approximately 100 percent of adjusted net income.

Wall Street currently is looking for fiscal year 2017 earnings of $3.47 per share on annual revenues of $4.77 billion.