We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Carrier (CARR) Q4 Earnings Beat Estimates, Revenues in Line
Read MoreHide Full Article
Carrier Global (CARR - Free Report) reported fourth-quarter 2023 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate by 3.92%. The figure increased 32.5% year over year.
Net sales of $5.10 billion missed the Zacks Consensus Estimate by 2.82% but remained unchanged year over year.
Product sales (87% of net sales) of $4.44 billion decreased 1.9% year over year. Service sales (13% of net sales) of $661 million were up 14.4% year over year.
Carrier shares were up 1.32% in pre-market trading. The company’s shares have underperformed the Zacks Computer & Technology sector year to date. While CARR shares have declined 2.1%, the Computer & Technology sector has increased 5.9%.
HVAC revenues of $3.29 billion accounted for 64.5% of net sales. The figure lagged the Zacks Consensus Estimate by 5.33% and declined 0.7% year over year.
Refrigeration revenues of $1.02 billion were up 8.6% year over year and accounted for 20.1% of net sales. The figure missed the consensus mark by 6.94%.
Fire & Security revenues of $909 million were down 5.3% year over year and contributed 17.8% of net sales. The reported figure lagged the consensus mark by 0.3%.
Research & development (R&D) expenses increased 14.1% year over year to $170 million. As a percentage of revenues, R&D expenses declined 10 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses grew 42.8% year over year to $961 million. As a percentage of revenues, SG&A expenses increased 570 bps year over year.
Adjusted operating margin expanded 130 bps on a year-over-year basis to 12.4%.
Adjusted operating margin of the HVAC segment expanded 250 bps year over year to 12.1%.
The Refrigeration segment reported an adjusted operating margin of 10.5%, which contracted 150 bps year over year.
Fire & Security’s adjusted operating margin was 14.2%, which contracted 30 bps year over year.
Balance Sheet
As of Dec 31, 2023, Carrier had cash and cash equivalents of $10.02 billion compared with $3.9 billion as of Sep 30, 2023.
Total debt (including the current portion) as of Dec 31, 2023, was $14.29 billion compared with $8.79 billion as of Sep 30, 2023.
In the reported quarter, Carrier generated $1.06 million in cash from operations, up from $1.04 billion in the prior quarter.
Capital expenditure was $233 million in the fourth quarter of 2023. Free cash flow was $829 million for the reported quarter.
Guidance
For 2024, Carrier expects sales of more than $26.5 billion. The Zacks Consensus Estimate for sales is pegged at $22.92 billion.
The adjusted operating margin is expected between 15% and 15.5%.
CARR anticipates adjusted earnings between $2.80 per share and $2.90 per share. The Zacks Consensus Estimate for the same is pegged at $2.81 per share.
The company expects a free cash flow of roughly $0.7 billion.
Image: Shutterstock
Carrier (CARR) Q4 Earnings Beat Estimates, Revenues in Line
Carrier Global (CARR - Free Report) reported fourth-quarter 2023 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate by 3.92%. The figure increased 32.5% year over year.
Net sales of $5.10 billion missed the Zacks Consensus Estimate by 2.82% but remained unchanged year over year.
Product sales (87% of net sales) of $4.44 billion decreased 1.9% year over year. Service sales (13% of net sales) of $661 million were up 14.4% year over year.
Carrier shares were up 1.32% in pre-market trading. The company’s shares have underperformed the Zacks Computer & Technology sector year to date. While CARR shares have declined 2.1%, the Computer & Technology sector has increased 5.9%.
Carrier Global Corporation Price
Carrier Global Corporation price | Carrier Global Corporation Quote
Quarter Details
HVAC revenues of $3.29 billion accounted for 64.5% of net sales. The figure lagged the Zacks Consensus Estimate by 5.33% and declined 0.7% year over year.
Refrigeration revenues of $1.02 billion were up 8.6% year over year and accounted for 20.1% of net sales. The figure missed the consensus mark by 6.94%.
Fire & Security revenues of $909 million were down 5.3% year over year and contributed 17.8% of net sales. The reported figure lagged the consensus mark by 0.3%.
Research & development (R&D) expenses increased 14.1% year over year to $170 million. As a percentage of revenues, R&D expenses declined 10 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses grew 42.8% year over year to $961 million. As a percentage of revenues, SG&A expenses increased 570 bps year over year.
Adjusted operating margin expanded 130 bps on a year-over-year basis to 12.4%.
Adjusted operating margin of the HVAC segment expanded 250 bps year over year to 12.1%.
The Refrigeration segment reported an adjusted operating margin of 10.5%, which contracted 150 bps year over year.
Fire & Security’s adjusted operating margin was 14.2%, which contracted 30 bps year over year.
Balance Sheet
As of Dec 31, 2023, Carrier had cash and cash equivalents of $10.02 billion compared with $3.9 billion as of Sep 30, 2023.
Total debt (including the current portion) as of Dec 31, 2023, was $14.29 billion compared with $8.79 billion as of Sep 30, 2023.
In the reported quarter, Carrier generated $1.06 million in cash from operations, up from $1.04 billion in the prior quarter.
Capital expenditure was $233 million in the fourth quarter of 2023. Free cash flow was $829 million for the reported quarter.
Guidance
For 2024, Carrier expects sales of more than $26.5 billion. The Zacks Consensus Estimate for sales is pegged at $22.92 billion.
The adjusted operating margin is expected between 15% and 15.5%.
CARR anticipates adjusted earnings between $2.80 per share and $2.90 per share. The Zacks Consensus Estimate for the same is pegged at $2.81 per share.
The company expects a free cash flow of roughly $0.7 billion.
Zacks Rank & Stocks to Consider
Currently, Carrier has a Zacks Rank #3 (Hold).
Shopify (SHOP - Free Report) , Pinterest (PINS - Free Report) and AvidXchange (AVDX - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 4.5% year to date. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
Pinterest shares have gained 7.1% year to date. PINS is set to report its fourth-quarter 2023 results on Feb 8.
AvidXchange shares have declined 9% year to date. AVDX is set to report its fourth-quarter 2023 results on Feb 28.