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Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q2 Performance
Carrier’s strong momentum in the Heating, Ventilating and Air Conditioning (HVAC) and aftermarket services is expected to have contributed to top-line growth in the second quarter.
The growing requirement for heating and cooling systems across residential and commercial applications is expected to have driven the HVAC segment.
The Zacks Consensus Estimate for second-quarter HVAC revenues is pegged at $4.99 billion, indicating 17.26% year-over-year growth.
The aftermarket segment rose 6% in the first quarter of 2024, with a strong performance in commercial HVAC. CARR aims for another year of double-digit growth in the segment, supported by a high attachment rate for chillers and a strong aftermarket business.
The data center market is projected to grow significantly due to the increasing heat generation from AI chips. Carrier’s efforts to capitalize on this growth by securing key wins and optimizing its global footprint are likely to have continued driving sales in the segment.
Carrier’s differentiated sustainability solutions are likely to have driven continued growth. For instance, their high-efficiency products for buildings, homes and cold chains, such as the Viessmann heat pumps and the HE19 Trailer Reefer Unit, address increasing market demands for energy efficiency and sustainability.
The company’s digital strategy is expected to have been a tailwind for the company. The expansion of monitoring capabilities through platforms like Abound and Viessmann’s One Base digital platform enhances early detection of issues and optimizes performance. This strategy is expected to have driven further growth and operational efficiency.
However, persistent weakness in the European residential market and macroeconomic uncertainty are expected to have been headwinds.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Carrier has an Earnings ESP of -1.78% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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Carrier (CARR) to Report Q2 Earnings: What's in the Cards?
Carrier Global (CARR - Free Report) is scheduled to report its second-quarter 2024 results on Jul 25.
The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $7.05 billion, indicating 17.67% year-over-year growth.
The consensus mark for earnings is currently pegged at 84 cents per share, down by a penny in the past 30 days.
Carrier’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 11.49%.
Carrier Global Corporation Price and EPS Surprise
Carrier Global Corporation price-eps-surprise | Carrier Global Corporation Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q2 Performance
Carrier’s strong momentum in the Heating, Ventilating and Air Conditioning (HVAC) and aftermarket services is expected to have contributed to top-line growth in the second quarter.
The growing requirement for heating and cooling systems across residential and commercial applications is expected to have driven the HVAC segment.
The Zacks Consensus Estimate for second-quarter HVAC revenues is pegged at $4.99 billion, indicating 17.26% year-over-year growth.
The aftermarket segment rose 6% in the first quarter of 2024, with a strong performance in commercial HVAC. CARR aims for another year of double-digit growth in the segment, supported by a high attachment rate for chillers and a strong aftermarket business.
The data center market is projected to grow significantly due to the increasing heat generation from AI chips. Carrier’s efforts to capitalize on this growth by securing key wins and optimizing its global footprint are likely to have continued driving sales in the segment.
Carrier’s differentiated sustainability solutions are likely to have driven continued growth. For instance, their high-efficiency products for buildings, homes and cold chains, such as the Viessmann heat pumps and the HE19 Trailer Reefer Unit, address increasing market demands for energy efficiency and sustainability.
The company’s digital strategy is expected to have been a tailwind for the company. The expansion of monitoring capabilities through platforms like Abound and Viessmann’s One Base digital platform enhances early detection of issues and optimizes performance. This strategy is expected to have driven further growth and operational efficiency.
However, persistent weakness in the European residential market and macroeconomic uncertainty are expected to have been headwinds.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Carrier has an Earnings ESP of -1.78% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Arista Networks’ shares have gained 45.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of #2 at present.
Apple shares have gained 16.3% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2.
Cognizant Technology Solutions’ shares have dropped 0.5% year to date. CTSH is set to report its second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.