Shares of diversified industrial manufacturing company Pentair (PNR) are lower after reporting mixed third-quarter financial results and guidance that fell short of analysts' expectations.

MIXED EARNINGS: Before the market open this morning, Pentair reported Q3 adjusted earnings per share of 78c on revenue of $1.2B. The company's EPS exceeded analysts' expectations of 72c, but its revenue missed estimates of $1.25B.

GUIDANCE: Along with its Q3 results, Pentair gave guidance for the current quarter ending in December. The company sees fourth quarter adjusted EPS of 73c on revenue of approximately $1.22B. Prior to the earnings report, analysts were expecting Q4 EPS of 86c on revenue of $1.29B. Additionally, the company lowered its 2016 adjusted EPS outlook to approximately $3.00 from its previous view of $3.07-$3.17, against analyst expectations of $3.12. The company anticipates FY16 sales of about $4.9B, below analysts' expectations of $5.07B. Pentair also expects full-year free cash flow of approximately 100% of adjusted net income.

EXECUTIVE COMMENTARY: Randall Hogan, Pentair's Chief Executive Officer commented that the Q4 guidance has been updated "to reflect the ongoing sluggish industrial environment," adding that "We no longer expect to see the typical end of year push on capital spending. We do not believe it is prudent to enter our planning cycle for next year expecting any dramatic recovery in growth and therefore we are aggressively aligning our cost structure with the reality of a continued slow growth world." Hogan says Pentair is on track for the sale of the Valves & Controls business to be completed at the end of this year or early next year, "at which point we expect to have a dramatically stronger balance sheet and be positioned to allocate resources in a disciplined manner."

PRICE ACTION: Shares of Pentair are down 4.1% to $56.53 in midday trading.