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Adjusted EPS of $2.27 surpassed the Zacks Consensus Estimate by 7.1% and increased 26.1% year over year. Revenues of $4.4 billion beat the consensus mark by 5.1% and increased 18% year over year on a reported basis and 19% organically.
Strong results in the quarter were driven by robust demand. Bookings were up 6% year over year on a reported basis and 8% organically, to $4.5 billion.
Trane’s shares have declined 12.7% over the past year compared with the 65.3% decline of the industry it belongs to.
Revenues and Bookings
The Americas segment’s revenues of $3.5 billion increased 20% year over year on a reported basis and 19% on an organic basis. Bookings increased 11% on a reported basis as well as organically, to $3.7 billion.
Europe, Middle East and Africa segment’s revenues came in at $513.1 million, up 4% year over year on a reported basis and 18% organically. Bookings were down 21% year over year on a reported basis and 10% organically, at 453.6 million.
Revenues from the Asia Pacific segment were up 20% year over year on a reported basis and 28% on an organic basis, to $377.4 million. Bookings of $358.8 million decreased 4% on a reported basis but increased 3% organically.
Margin Performance
Adjusted EBITDA came in at $809 million, up 21% year over year. Adjusted EBITDA margin improved 50 basis points (bps) to 18.5%. Adjusted operating income of $729 million increased 22% year over year, with the adjusted operating margin improving 60 bps to 16.7%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $1.1 billion, flat with the previous quarter. Debt balance was $4.8 billion, flat with the previous quarter’s tally.
The company generated $515 million of cash from operating activities and a free cash flow of $504 million in the quarter.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane expects revenues to increase 11-12% on a reported basis and 13-14% on an organic basis compared with the prior expectation of an 11% increase on a reported basis and 12% on an organic basis.
Adjusted EPS is expected to be between $7.15 and $7.2 compared with the previously expected range of $7.05-$7.15. The updated guided range is above the current Zacks Consensus Estimate of $7.08.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Trane Technologies (TT) Q3 Earnings Beat Estimates, Up Y/Y
Trane Technologies plc (TT - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted EPS of $2.27 surpassed the Zacks Consensus Estimate by 7.1% and increased 26.1% year over year. Revenues of $4.4 billion beat the consensus mark by 5.1% and increased 18% year over year on a reported basis and 19% organically.
Strong results in the quarter were driven by robust demand. Bookings were up 6% year over year on a reported basis and 8% organically, to $4.5 billion.
Trane’s shares have declined 12.7% over the past year compared with the 65.3% decline of the industry it belongs to.
Revenues and Bookings
The Americas segment’s revenues of $3.5 billion increased 20% year over year on a reported basis and 19% on an organic basis. Bookings increased 11% on a reported basis as well as organically, to $3.7 billion.
Europe, Middle East and Africa segment’s revenues came in at $513.1 million, up 4% year over year on a reported basis and 18% organically. Bookings were down 21% year over year on a reported basis and 10% organically, at 453.6 million.
Revenues from the Asia Pacific segment were up 20% year over year on a reported basis and 28% on an organic basis, to $377.4 million. Bookings of $358.8 million decreased 4% on a reported basis but increased 3% organically.
Margin Performance
Adjusted EBITDA came in at $809 million, up 21% year over year. Adjusted EBITDA margin improved 50 basis points (bps) to 18.5%. Adjusted operating income of $729 million increased 22% year over year, with the adjusted operating margin improving 60 bps to 16.7%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $1.1 billion, flat with the previous quarter. Debt balance was $4.8 billion, flat with the previous quarter’s tally.
The company generated $515 million of cash from operating activities and a free cash flow of $504 million in the quarter.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Raised 2022 Guidance
Trane expects revenues to increase 11-12% on a reported basis and 13-14% on an organic basis compared with the prior expectation of an 11% increase on a reported basis and 12% on an organic basis.
Adjusted EPS is expected to be between $7.15 and $7.2 compared with the previously expected range of $7.05-$7.15. The updated guided range is above the current Zacks Consensus Estimate of $7.08.
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.