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Adjusted EPS of $2.68 surpassed the Zacks Consensus Estimate by 5.1% and increased 24.1% year over year.
Revenues of $4.7 billion beat the consensus mark by 1.7% and increased 12.3% year over year on a reported basis and 11% organically. Bookings were down 3% year over year on a reported basis and 5% organically.
Trane’s shares have gained 37.1% over the past year against the 31.9% decline of the industry it belongs to.
Trane Technologies plc Price, Consensus and EPS Surprise
The Americas segment’s revenues of $3.7 billion were in line with our estimate and increased 9% year over year on a reported basis, as well as organically. Bookings were down 8% on a reported basis, as well as organically, at $3.4 billion.
Europe, Middle East and Africa segment’s revenues came in at $617.6 million, up 18% year over year on a reported basis and 8% organically, beating our estimate of $579 million. Bookings were up 24% year over year on a reported basis, as well as organically, at $591.7 million.
Revenues from the Asia Pacific segment were up 40% year over year on a reported basis and 41% on an organic basis, to $394.6 million, beating our estimate of $324.8 million. Bookings of $461.9 million increased 6% on a reported basis, as well as organically.
Margin Performance
Adjusted EBITDA came in at $927 million, up 18% year over year. Adjusted EBITDA margin improved 100 basis points (bps) to 19.7%. Adjusted operating income of $849 million increased 20% year over year. Adjusted operating margin improved 110 bps to 18%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $664 million compared with $693 billion in the previous quarter. The debt balance was $5 billion compared with the previous quarter’s $4.8 billion. It generated $531 million of cash from operating activities and a free cash outflow of $479 million in the quarter.
Raised 2023 Guidance
The company currently expects revenues to increase 10% on a reported basis compared with the previous expectation of a 9-10% increase. It now expects revenue growth to be 8% on an organic basis compared with the prior expectation of 7-8% growth.
Adjusted EPS is expected to be between $8.8 and $8.9 compared with the previously anticipated $8.3-$8.5. The Zacks Consensus Estimate of $8.45 stands within the revised guided range.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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Trane Technologies (TT) Q2 Earnings Beat Estimates, Rise Y/Y
Trane Technologies plc (TT - Free Report) reported better-than-expected second-quarter 2023 results.
Adjusted EPS of $2.68 surpassed the Zacks Consensus Estimate by 5.1% and increased 24.1% year over year.
Revenues of $4.7 billion beat the consensus mark by 1.7% and increased 12.3% year over year on a reported basis and 11% organically. Bookings were down 3% year over year on a reported basis and 5% organically.
Trane’s shares have gained 37.1% over the past year against the 31.9% decline of the industry it belongs to.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Revenues and Bookings
The Americas segment’s revenues of $3.7 billion were in line with our estimate and increased 9% year over year on a reported basis, as well as organically. Bookings were down 8% on a reported basis, as well as organically, at $3.4 billion.
Europe, Middle East and Africa segment’s revenues came in at $617.6 million, up 18% year over year on a reported basis and 8% organically, beating our estimate of $579 million. Bookings were up 24% year over year on a reported basis, as well as organically, at $591.7 million.
Revenues from the Asia Pacific segment were up 40% year over year on a reported basis and 41% on an organic basis, to $394.6 million, beating our estimate of $324.8 million. Bookings of $461.9 million increased 6% on a reported basis, as well as organically.
Margin Performance
Adjusted EBITDA came in at $927 million, up 18% year over year. Adjusted EBITDA margin improved 100 basis points (bps) to 19.7%. Adjusted operating income of $849 million increased 20% year over year. Adjusted operating margin improved 110 bps to 18%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $664 million compared with $693 billion in the previous quarter. The debt balance was $5 billion compared with the previous quarter’s $4.8 billion. It generated $531 million of cash from operating activities and a free cash outflow of $479 million in the quarter.
Raised 2023 Guidance
The company currently expects revenues to increase 10% on a reported basis compared with the previous expectation of a 9-10% increase. It now expects revenue growth to be 8% on an organic basis compared with the prior expectation of 7-8% growth.
Adjusted EPS is expected to be between $8.8 and $8.9 compared with the previously anticipated $8.3-$8.5. The Zacks Consensus Estimate of $8.45 stands within the revised guided range.
Trane currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.