Pentair, Inc. (PNR), a diversified industrial company, Thursday, affirmed its earnings guidance for the fourth quarter and full year 2009. The company also provided guidance for the first quarter of fiscal 2010 along with the full year.
The company continues to expect fourth quarter 2009 net earnings per share from continuing operations in the range of $0.37 to $0.41, or $0.40 to $0.44 excluding special items.
On average, 15 analysts polled by Thomson Reuters estimates earnings of $0.43 per share for the fourth quarter. Analysts' estimates typically exclude special items.
For the full year, the company continues to expect earnings in the range of $1.25 to $1.29 per share, or $1.40 to $1.44 per share excluding special items. The company said it remains on track to achieve free cash flow greater than $225 million for 2009.
Analysts currently expect Pentair to post earnings of $1.43 per share for the full year 2009.
Looking forward, for the first quarter, the company provided a baseline sales projection of approximately $660 million and baseline earnings per share estimate to equal or exceed $0.30.
Analysts expect first quarter earnings of $0.39 per share on revenues of $643.97 million.
For the full year, the company provided baseline sales estimate of approximately $2.8 billion, up low single digits, and baseline earnings per share estimate to equal or exceed $1.70. The company expects to continue to generate cash flows in excess of net income for 2010.
Analysts expect full year 2010 earnings of $1.82 per share on revenues of $2.73 billion.
The company indicated that its initial outlook includes very little volume growth but a continuation of strong operating margins via productivity to deliver at least $1.70 of earnings per share.
Pentair expects that due to the success of its new product introductions and growth initiatives in fast growing regions and key new vertical markets, coupled with potentially stronger markets, would likely yield higher sales growth over the year. In that case the earnings would reflect operating income conversion of those sales at around 40%.
PNR closed Thursday's regular trading at $32.11 down $0.23 or 0.71% on the NYSE.
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