Pentair plc PNR is set to release its first-quarter 2025 results on April 22, before the opening bell.

The Zacks Consensus Estimate for PNR’s first-quarter sales is pegged at $984.9 million, indicating a 3.2% fall from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.01 per share. The Zacks Consensus Estimate for PNR’s earnings has moved down 0.9% in the past 60 days. The estimate indicates year-over-year growth of 7.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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Pentair’s Solid Earnings Surprise History

PNR’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 4.6%. This is depicted in the following chart.

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What the Zacks Model Unveils for PNR

Our model predicts an earnings beat for Pentair this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Pentair has an Earnings ESP of +0.55%.

Zacks Rank: PNR currently carries a Zacks Rank of 3.

Factors Likely to Have Shaped Pentair’s Q1 Performance

After witnessing lower volumes for five consecutive quarters, PNR’s pool segment saw a rebound in volumes in the second quarter of 2024, with 17.1% growth. However, volume growth has since decelerated to 4.1% in the third quarter and 2% in the fourth quarter of 2024. New pool builds in 2024 were at historical lows, and the company expects a low-single-digit rise in 2025.

We anticipate lower volume growth of 2.4% for the first quarter of 2025. Pricing is expected to have had a favorable impact of 0.5%. This is expected to have been offset by the unfavorable impacts of currency translation of 1.3%. Our model projects the Pool segment’s sales to be $365 million, indicating a year-over-year rise of 1.5%.

The Flow and Water Solutions segments continue to bear the impacts of a weak residential market due to high interest rates.

We expect the Flow segment’s revenues to be $360 million, indicating a decline of 6.2% from the prior-year quarter’s actual. Residential and agriculture verticals have been impacted by high interest rates. The ongoing weakness in industrial verticals is expected to have weighed on volumes. Our model projects a 5.7% year-over-year decline in volumes, while pricing is expected to have a positive impact of 0.5%. Currency impacts are projected at a negative 1.1%.

Our model predicts the Water Solutions segment’s net sales to decline 5.6% year over year to $258 million. Ongoing weakness in the residential vertical is expected to lead to a 4.6% dip in volumes, which will be likely offset by a 0.2% rise in pricing. The unfavorable impact of currency translation of 1.2% is also expected to have lowered its sales.

Pentair has been witnessing a tight supply of raw materials, along with rising logistics costs. Despite the weakness in the Water and Flow segments and cost headwinds, the company has delivered margin expansion across its segments, aided by pricing, cost savings and gains from its Transformation initiatives. We expect this to have continued in the first quarter as well.

PNR Stock's Price Performance

Pentair shares have gained 2.5% in the past year compared with the industry’s 9.4% growth.

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Other Stocks That Warrant a Look

Here are some other companies with the right combination of elements to post an earnings beat in their upcoming releases.

Casella Waste Systems, Inc. CWST is scheduled to release its first-quarter 2025 results on May 1. It has an Earnings ESP of +38.44% and a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CWST’s earnings is pegged at 11 cents per share, which indicates year-over-year growth from a loss of 1 cent reported in the year-ago quarter. It has a trailing four-quarter average surprise of 49.5%.

Zurn Elkay Water Solutions Corporation ZWS, expected to release its first-quarter 2025 results on April 22, has an Earnings ESP of +2.34% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for ZWS’s first-quarter 2025 earnings is pegged at 29 cents per share, indicating flat year-over-year growth. It has a trailing four-quarter average surprise of 7.8%.

Waste Connections, Inc. WCN is scheduled to release its first-quarter 2025 results on April 23. It has an Earnings ESP of +2.07% and a Zacks Rank of #3 at present.

The Zacks Consensus Estimate for WCN’s earnings is pegged at $1.07 per share, which indicates year-over-year growth of 2.9%. It has a trailing four-quarter average surprise of 1.9%.

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Casella Waste Systems, Inc. (CWST) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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