Shares of Pentair Inc., the maker of water storage and treatment systems, dropped 4.86 percent Tuesday after the company reported second-quarter earnings below analysts' expectations.
Analysts had forecast earnings of 39 cents per share, while the company reported net earnings per diluted share from continuing operations of 33 cents, down 77 percent from the second quarter last year. After adjustments for restructuring charges and the early redemption of bonds, Pentair's second quarter earnings were 38 cents a share.
The company reported that its North American residential sales are improving but that it remains in the throes of the recession and expects third quarter sales to be down 20 percent.
The stock closed at $26.63 a share, down $1.36.
Pentair's second-quarter sales dropped 23 percent to $694 million, while its net income from continuing operations plummeted from $140 million last year to $32 million this year.
Pentair maintained its full-year guidance of $2.7 billion in sales, a 20 percent decline from 2008, and full-year earnings per share of $1.40 or better.
CEO Randy Hogan indicated that by February Pentair will know how much of the first block of federal stimulus money it will get from water projects. About $15 billion was approved by Congress for water projects.