What drove PNR's EPS surprise in Q2 2024?

Pentair's EPS surprise in Q2 2024 can be attributed to several key factors: 1. **Strong Operational Performance**: Pentair's adjusted operating income saw a significant increase, growing by 13% to $239 million. This was driven by strong operational efficiency and strategic initiatives, despite a 2% decline in sales to $993 million. 2. **Margin Expansion**: The company reported notable margin expansion, with a rise in gross profit and operating income. The gross margin was 38.8% compared to 37.5% in the prior year, indicating improved profitability. 3. **Segmental Performance**: Pentair's Pool segment performed well, with sales growing by 7% to $331 million and income increasing by 24%. This segment's strong performance contributed significantly to the overall financial results. 4. **Strategic Initiatives**: The company's focus on the 80/20 principle and transformation initiatives have been successful in driving operational and financial performance. These initiatives have helped Pentair mitigate risks to the top line while expanding profitability. In summary, Pentair's EPS surprise in Q2 2024 was driven by strong operational performance, margin expansion, segmental growth, and strategic initiatives. These factors combined to deliver better-than-expected financial results.