Pentair plc PNR reported first-quarter 2016 adjusted earnings of 76 cents per share, flat year over year. Earnings, however, outperformed the Zacks Consensus Estimate of 72 cents and also came in above the company’s guidance of 70–72 cents per share.Including one-time items, the company reported earnings of 59 cents per share, down 9% from 65 cents in the year-ago quarter. Operational UpdateNet sales increased 7% year over year to $1.58 billion and surpassed the Zacks Consensus Estimate of $1.57 billion. Revenues, however, were below management’s guidance of $1.6 billion. Excluding the unfavorable impact of currency translation and positive contribution from acquisitions, core sales grew 1%.Cost of sales increased 7.8% to $1,040 million in the quarter from $964.8 million in the year-ago quarter. Gross profit in the reported quarter was $535.4 million, up 5% from $510 million in the prior-year quarter. Gross margin contracted 60 basis points (bps) year over year to 34% in the quarter.Adjusted segment income increased 5% to $210 million from $200 million in the year-ago quarter. Operating margin decreased 30 bps to 13.3%.Segmental PerformanceNet sales in the Valves & Controls segment were $387 million, down 10% year over year. Core sales fell 7% and unfavorable currency translation impact was of 3%. Backlog decreased 2% sequentially to $1.1 billion. Sales in the Aftermarket/MRO Strategic Business Group (50% of the segment sales) declined 9%.Sales in the Engineered Projects Strategic Business Group (balance 50% of the segment’s sales) dropped 4%. Segment operating profit plunged 54% to $25 million from $55 million in the year-ago quarter.The Flow & Filtration Solutions segment reported revenues of $338 million, down 4% from the year-ago quarter owing to a 2% decline in core sales and a 2% negative foreign currency impact. Sales in the Water Technologies vertical dipped 1%, whereas sales in the Fluid Solutions vertical dropped 5%. However, sales in the Process Filtration vertical went up 4%. Segment operating earnings increased 9% year over year to $40 million.Sales from the Water Quality Systems segment rose 8% year over year to $332 million, driven by a 9% increase in core sales, partially offset by negative foreign currency translation impact of 1%. Sales in the Aquatic & Environmental Systems vertical went up 13%. Sales in Water Filtration verticals grew 5% year over year. Operating earnings soared 19% to $62 million.Revenues in the Technical Solutions segment increased 33% to $525 million. Core sales grew 5% and contribution of 30% from acquisitions was offset by a negative impact of 2% from foreign currency translation. Sales in the Enclosures Strategic Business Group declined 5%, while sales at Thermal Management verticals improved 22%. Operating earnings surged 45% year over year to $113 million.Financial UpdatePentair had cash and cash equivalents of $158 million at the end of the first quarter of 2016 compared with $126 million at the end of 2015. The company used $15 million of cash in operating activities in the reported quarter compared with the usage of $126 million in the year-ago quarter. As of quarter end, Pentair’s total debt increased to $4.8 billion from $4.7 billion as of Dec 31, 2015.GuidancePentair maintained its 2016 EPS guidance range of $4.05–$4.25. The company raised its 2016 sales projection from $6.6 billion to $6.7 billion, which is up approximately 3% year over year on a reported basis, but down 1% on a core basis. The company expects to deliver full-year free cash flow of approximately 100% of adjusted net income.Pentair also initiated its second-quarter 2016 guidance. The company expects EPS in the range of $1.08–$1.11. Earnings will be up approximately 2% year over year on an adjusted basis. Revenues are projected at around $1.7 billion, up around 4% on a reported basis and down approximately 3% year over year on a core basis.Pentair will continue to benefit from optimism related to the Residential & Commercial businesses and stabilization in Industrial businesses. The integration of ERICO is on track and the company remains committed to deliver full-year synergies of greater than $10 million.Pentair will aggressively manage its cost structure and drive productivity to work through near-term challenges. However, the company’s energy-related businesses will remain challenged given the slump in oil prices. Moreover, a stronger U.S. dollar, and weakness in the Valves and Controls segment will continue to negatively impact Pentair’s results.Zacks RankPentair currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industrial products sector include ACCO Brands Corporation ACCO, Altra Industrial Motion Corp. AIMC and Alarm.Com Holdings, Inc. ALRM. All these stocks carry a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ALTRA INDUS MOT (AIMC): Free Stock Analysis Report PENTAIR PLC (PNR): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ALARM.COM HLDGS (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research