Fri, Aug. 19, 11:29 AM
- "The purchase of Pentair’s (PNR -1.6%) Valves & Controls business adds definitive risk to Emerson’s (EMR -3.8%) earnings over the next several years," says Buckingham Research's Joshua Pokrzywinski, downgrading Emerson to Underperform from Neutral, and cutting the price target to $44 from $49.
- “We believe the strategic overlap is less than ideal."
- Also downgrading is Credit Suisse, to Neutral from Outperform. The price target remains at $57.
- “Investors will be rightly cautious of this pitched ‘strategic deal’ at the wrong time of the cycle,” says Stifel's Robert McCarthy as he maintains his Buy rating. "The perception [will be] that Emerson has caught a falling knife in the same general end market where it struggled for the past two plus years.”
- Previously: Emerson to buy Pentair's valves and controls business for $3.15B (Aug. 18)
Thu, Aug. 18, 5:12 PM
- Emerson Electric (NYSE:EMR) has agreed to buy the Valves & Controls business of Pentair (NYSE:PNR) for $3.15B.
- Pentair shares are up 1.1% after hours.
- It's a move in line with Emerson's two core verticals, particularly combined with Emerson's planned multibillion-dollar divestitures of Network Power, Leroy-Somer and Control Techniques.
- “This acquisition delivers on our strategic plan of investing in Automation Solutions and in markets where we have a global leadership position and see significant long-term growth opportunities,” says CEO David Farr in a statement.
- The deal's expected to close in four to six months.
- Conference call link
Thu, Jul. 28, 7:53 AM
Wed, Jul. 27, 5:30 PM
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Fri, Jul. 22, 2:31 PM
- Emerson Electric (EMR +0.2%) has made an offer to acquire pump manufacturer Pentair's (PNR +0.8%) valves and controls business, in a sale could be valued at ~$2B (£1.5B), Reuters reports.
- Such a deal would free PNR from a unit that CEO Randy Hogan considers a laggard in generating cash, while allowing EMR to expand within its core sectors as it seeks to shed its network power and motors and drives businesses, according to the report.
Fri, Jul. 1, 7:03 AM
- June monthly performance was: +2.86%
- 52-week performance vs. the S&P 500 is: +7%
- $0.25 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: S&P Global Inc (SPGI): 2.15464%, Archer-Daniels Midland Co (ADM): 2.15039%, Cincinnati Financial Corp (CINF): 2.13109%, McCormick & Co Inc Non-Voting (MKC): 2.10728%, C.R. Bard Inc (BCR): 2.10554%, Cintas Corp (CTAS): 2.10524%, Leggett & Platt Inc (LEG): 2.10068%, Lowe's Companies Inc (LOW): 2.09886%, Brown-Forman Corp Class B (BF.B): 2.09499%, Pentair PLC (PNR): 2.09495%
Fri, Jun. 10, 3:47 PM
- Pentair (PNR -1.3%) is upgraded to Buy from Neutral with a $70 price target, lifted from $59, at Seaport Global, which believes the worst margin performance is behind the company in its V&C segment.
- The firm says it has increased confidence in management's forecast for a 50% reduction in decrementals in Q2 as "volumes increase seasonally and high-cost inventory is turned."
- While expected Engineered Projects within V&C to remain challenged on the top line, Seaport says upside to its estimates is likely "if short-cycle spending re-accelerates, as we believe pent-up demand exists in the market, but timing remains uncertain."
Thu, Jun. 2, 3:08 PM
- Pentair (PNR +0.8%) is exploring a sale of its valves and controls business, a move that would largely unwind a merger deal it struck just four years ago, WSJ reports.
- PNR is working with Citigroup on a potential sale of the unit, which could fetch more than $2B, according to the report.
- The valves and controls business is PNR's largest but its Q1 sales fell 10% Y/Y and income plunged 54%, in part because of declining energy demand; the company has predicted an 8% Y/Y drop in full-year revenue for the unit.
Mon, May 2, 7:58 AM
- April monthly performance was: +0.8%
- $0.21 in dividends were paid in April
- Top 10 Holdings as of 3/31/2016: Nucor Corp (NUE): 2.38%, Emerson Electric Co (EMR): 2.24%, Illinois Tool Works Inc (ITW): 2.22%, W.W. Grainger Inc (GWW): 2.22%, Genuine Parts Co (GPC): 2.22%, Pentair PLC (PNR): 2.19%, Leggett & Platt Inc (LEG): 2.19%, McCormick & Co Inc Non-Voting (MKC): 2.17%, Air Products & Chemicals Inc (APD): 2.15%, Dover Corp (DOV): 2.15%
Tue, Apr. 26, 7:29 AM
Mon, Apr. 25, 5:30 PM
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Tue, Feb. 2, 9:20 AM
- Adjusted net income from continuing operations of $206.4M, or $1.13 per diluted share vs. $1.17 per share in the same quarter a year ago.
- Sales by segment: Valves & Controls -22%; Flow & Filtration Solutions -8%; Water Quality Systems +4%; Technical Solutions +23%.
- Free cash flow of $316M for the quarter and $643M for the full year; which represented approximately 90% conversion of adjusted net income for the full year.
- Forecast for 1Q16; Adjusted EPS of $0.70-$0.72, on sales of $1.6B.
- Guidance for 2016: Adjusted EPS of $4.05-$4.25, on sales of $6.6B.
- Q4 results
Tue, Feb. 2, 7:57 AM
- Pentair (NYSE:PNR): Q4 EPS of $1.13 beats by $0.09.
- Revenue of $1.76B (-2.2% Y/Y) beats by $10M.
Mon, Feb. 1, 5:30 PM
Dec. 17, 2015, 7:39 AM
- Reaffirms 2015 adjusted EPS outlook of $3.84-$3.86. Anticipates 4Q15 adjusted EPS of $1.03-$1.05.
- Expects full year 2016 adjusted EPS of $4.05-$4.25. At the mid-point of the range, core sales are expected to be down approximately 2% and segment income is expected to increase 10%. Free cash flow of greater than $750M is expected to be equal to or greater than adjusted net income.
Nov. 20, 2015, 11:30 AM
- Market growth remains challenging whether there is an industrial recession or not, so investors should focus on stocks with strong end markets, particularly Allegion (ALLE +0.3%) and Danaher (DHR +0.5%), Bernstein's Steven Winoker says.
- Other stocks in a lower but still generally favorable tier include General Electric (GE +0.8%), Honeywell (HON +0.9%), Ingersoll-Rand (IR +0.9%) and 3M (MMM +0.7%), as these companies are exposed to favorable end markets but also to meaningfully weak markets, the analyst says.
- Aside from their portfolio transformations, DHR and GE have benefited and should continue to benefit from their above-average growth profiles in the current low-growth environment, Winoker says.
- Energy-heavy Dover (DOV +0.2%), Pentair (PNR +0.4%) and Emerson Electric (EMR +0.2%) remain the most challenged, according to Winoker, while Eaton (ETN +1.1%), Rockwell Automation (ROK +0.5%) and Tyco (TYC -0.2%) have a mix of tailwinds and headwinds, with the former more challenged on hydraulics/trucks and the latter two on energy.
- Winoker sees limited downside for DOV, which is highly linked to crude oil prices but is performing well in the ~80% of its portfolio not linked to oil.
- Earlier: Low expectations are no longer enough for multi-industry stocks, analyst says (Nov. 19)