PNR - Pentair stock gains after third quarter earnings topper

• Pentair ( NYSE: PNR ) is up 4.81% on Tuesday after reporting beat on both top and bottom lines in third quarter earnings.
• Revenue of $1.06B (+9.4% Y/Y) beat consensus by $20M . Excluding currency translation, acquisitions and divestitures, core sales grew 4% in the third quarter.
• By Segment: Consumer Solutions rose 8%; Industrial & Flow Technologies up 10% year-over-year with double digit gain in return on sales.
• On an adjusted basis, the company reported segment income of $207M , up 15% Y/Y, and return on sales of 19.6%, an increase of 110 basis points.
• "We saw price outpace inflation once again resulting in strong margin expansion," commented Pentair’s President and CEO John L. Stauch.
• Net cash provided by operating activities of continuing operations was $95M compared to $179M in prior year quarter.
• Non-GAAP EPS of $0.99 beats by $0.06 .
• "Given the acceleration of inventory correction in our residential channels, coupled with headwinds from foreign exchange and higher interest rates, we expect volumes to continue to moderate for the next few quarters," noted Stauch.
• Q4 Outlook: Adjusted EPS forecasted at $0.79 vs. consensus of $0.88 ; sales to be approximately flat Y/Y vs. consensus growth of 6.8%.
• FY 2022 Guidance: The company updates full year 2022 sales guidance to be up approximately 9% on a reported basis. GAAP EPS to be $3.01 and on an adjusted basis EPS to be approximately $3.65 vs. consensus of $3.68.

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