Shares of Pentair (PNR - Get Report) tumbled 14.6% to $38.66 Tuesday after the water treatment company reduced its earnings and sales guidance after cold and wet weather "severely impacted" its aquatics and ag-related businesses.
The London-based company slashed its first-quarter net earnings forecast to 30 cents a share from a range of 47 cents to 50 cents, and its adjusted outlook to 43 cents from a range of 52 cents to 55 cents. Pentair said it expects sales to drop 6% to $689 million, down from earlier guidance of flat to up 1%. Analysts were looking for earnings of 54 cents a share on sales of $734 million.
For the year, Pentair updated its earnings guidance to a range of $2.04 to $2.09 and adjusted earnings to a range of $2.30 to $2.35 a share, down from an earlier projection of $2.29 to $2.39 and on an adjusted basis of $2.50 to $2.60 a share. The company said it anticipates full-year 2019 sales to increase about 1% to 2% on a reported basis and to be roughly flat to up 1% on a core basis. The company's prior 2019 sales guidance was an increase of roughly 5% to 6% on a reported basis and up about 4% to 5% on a core basis.
"Our first quarter was significantly impacted by the adverse cold and wet weather in our higher margin aquatics and ag-related businesses," John Stauch, president and CEO, said in a letter. "While we are disappointed with the slow start to the year, we are pleased with our recent acquisitions and remain confident about the long term outlook of our businesses."