(Reuters) – UK-based water technology company Pentair forecast first-quarter revenue below estimates on Tuesday due to softer demand for new pools and related services.
Consumers in the United States are cutting back spending on discretionary items amid high borrowing costs, impacting Pentair’s pool business, which makes filters and pumps and accounted for about 40% of net sales in 2022.
The company’s overall pool sales were down 2% in the fourth quarter and 18% in 2023, compared to a year ago.
It expects first-quarter adjusted profit to be between 88 cents and 91 cents per share, compared with analysts’ estimate of $1 per share, according to LSEG data.
It also expects first-quarter sales to be down about 2% to 3%, compared to the previous year.
Pentair reported adjusted profit per share of 87 cents in the fourth quarter, beating analysts’ average expectation of 86 cents per share, according to LSEG data.
Sales for the quarter were $985 million, compared with analysts’ estimate of 975.7 million.
(Reporting by Kannaki Deka in Bengaluru; Editing by Pooja Desai)
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