In its first quarter as a solo and water-focused company, Pentair PLC reported significantly improved second-quarter profits that beat expectations, but its revenue underwhelmed Wall Street analysts.
The pump-and-filtration equipment maker that is based in England but managed from Golden Valley reported sales rose 4 percent to $781 million for the quarter ended June 30. Wall Street analysts on average had forecast sales of $787 million, and the company’s stock lost 5 percent of its value on Wednesday.
Profits, however, beat expectations. They jumped to 44 cents a share, compared to a 2-cent loss for the same period the year before. Excluding one-time items, adjusted earnings were 71 cents a share, two pennies better than analysts expected.
The quarterly results were the first posted since Pentair split into two companies effective May 1.
At that time, Pentair spun off its electrical enclosures and thermal business into a separate, publicly traded company called nVent Electric PLC. The remaining Pentair entity is designed as a stand-alone firm focused on water filtration, separation, flow controls and other liquid-management equipment.
“We believe our second quarter results demonstrate our ability to use agility and prioritization to meet our commitments,” said CEO and President John Stauch in a statement. “We remain focused on furthering our strategy to be a pure play water company, driving organic growth, and utilizing our capital wisely to create incremental shareholder value.”
The stock closed Wednesday at $41.91.