Pentair Reports Second Quarter 2019 Results (23/07/2019)
- Sales were up 2 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 1 percent in the second quarter.
- Second quarter 2019 earnings per diluted share from continuing operations (“EPS”) were $0.68 compared to $0.44 in the second quarter of 2018. On an adjusted basis, the company reported EPS of $0.69 compared to $0.71 in the second quarter of 2018. Segment income, adjusted net income, free cash flow, and adjusted EPS are described in the attached schedules.
- Second quarter 2019 operating income was $134 million, up 9 percent compared to operating income for the second quarter of 2018, and return on sales (“ROS”) was 16.7 percent, an increase of 100 basis points when compared to the second quarter of 2018. On an adjusted basis, the company reported segment income of $154 million for the second quarter, down 6 percent compared to segment income for the second quarter of 2018, and ROS was 19.3 percent, a decrease of 170 basis points when compared to the second quarter of 2018.
Net cash provided by operating activities of continuing operations was $356 million and free cash flow provided by continuing operations was $343 million for the quarter.
The company updates its estimated 2019 GAAP EPS to approximately $2.13 and on an adjusted EPS basis to approximately $2.35. The company updates its full year 2019 sales guidance to approximately flat to up 1 percent on a reported basis and approximately flat to down 1 percent on a core basis compared to full year 2018. The company expects full year free cash flow to approximate adjusted net income.
In addition, the company introduces third quarter 2019 GAAP EPS of approximately $0.50 - $0.52 and on an adjusted EPS basis of approximately $0.54 - $0.56. The company expects third quarter sales to be approximately flat to up 2 percent on a reported basis and approximately down 1 to 3 percent on a core basis compared to third quarter 2018.