Consumers focusing this summer on home improvements and additions, including new pools, helped Pentair to report a 20% increase in third quarter earnings.
The company earned $110.8 million, or 66 cents per share for the quarter, up 20% from the $92.3 million, or 55 cents per share from last year's third quarter.
Adjusted earnings were 70 cents per share, up from 58 cents in the third quarter of 2019, exceeding the 51 cents per share analysts were expecting.
The maker of water treatment products for residential and commercial use is headquartered in London but has executive offices in Golden Valley.
Pentair reported overall revenue of $799 million, up 12% from the $714 million it reported in the same quarter last year. Core sales, which adjusts for currency fluctuations, acquisitions and divestitures, was up 10%.
Results were strongest in the company's Consumer Solutions business with revenue up 25% over the comparable period last year. The segment includes equipment for home pools and spas but also residential water filtration equipment.
"Our Consumer Solutions segment delivered strong growth in the quarter led by strength in residential markets, particularly our Pool business," said Pentair CEO John Stauch in a news release.
The company saw a 46% increase in the sale of pool and spa equipment during the quarter. A late spring and mandated lockdowns dampened results in the second quarter but as June approached the company began to see increased activity, company chief financial officer, Robert Fishman, told analysts on the company's earnings call.
"Dealers across the country began to experience a backlog of activity that resulted in many quotes for new pools being delayed as dealers were struggling to keep up with demand," Fishman told analysts.
The company worked to meet demand but productivity was hampered by supply chain disruptions and workflow accommodations made in its factories to adhere to social distancing guidelines.
Results were offset by the Industrial and Flow Technologies segment where revenue declined 4% in the quarter as commercial and industrial clients were hesitant to budget capital improvement projects in the uncertain economic environment.
Especially hard hit were water treatment sales to the restaurant industry.
The company also signaled a strong finish to the year, updating its guidance to say it expects adjusted EPS for 2020 to be $2.35 to $2.40 per share on revenue of approximately $2.95 billion.
Shares of Pentair closed Tuesday at a 52-week high of $51.25, up 4% for the day.