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Carrier (CARR) Q2 Earnings Beat Estimates, Revenues Up Y/Y
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Carrier Global (CARR - Free Report) reported second-quarter 2024 adjusted earnings of 87 cents per share, which surpassed the Zacks Consensus Estimate by 2.35%. The figure increased 10.1% year over year.
Net sales of $6.68 billion missed the Zacks Consensus Estimate by 5.13% but increased 11.6% year over year.
Product sales (89.8% of net sales) of $6 billion increased 12.1% year over year. Service sales (10.2% of net sales) of $685 million were up 7.5% year over year.
Quarter Details
HVAC revenues of $4.97 billion contributed 74.3% to net sales. The figure missed the Zacks Consensus Estimate by 0.47% and increased 17.9% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
Refrigeration revenues of $973 million were up 0.1% year over year and contributed 14.5% to net sales. The figure missed the consensus mark by 1.29%.
Fire & Security revenues of $871 million were down 6.5% year over year and contributed 13% to net sales. The reported figure missed the consensus mark by 4.70%.
Research & development (R&D) expenses increased 23.8% year over year to $187 million. As a percentage of revenues, R&D expenses expanded 30 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses rose 24.4% year over year to $975 million. As a percentage of revenues, SG&A expenses increased 150 bps year over year.
Adjusted operating margin expanded 140 bps on a year-over-year basis to 18.9%.
Adjusted operating margin in the HVAC segment expanded 120 bps year over year to 19.9%.
The Refrigeration segment reported an adjusted operating margin of 12.1%, which contracted 10 bps year over year.
Fire & Security’s adjusted operating margin was 17.8%, expanding 310 bps year over year.
Balance Sheet
As of Jun 30, 2024, Carrier had cash and cash equivalents of $2.91 billion compared with $1.31 billion as of Mar 31, 2024.
Total debt (including the current portion) as of Jun 30, 2024, was $13.32 billion compared with $16.89 billion as of Mar 31, 2024.
In the reported quarter, Carrier generated $700 million in cash from operations, up from $40 million in the prior quarter.
Capital expenditure was $111 million in the second quarter of 2024. Free cash flow was $549 million for the reported quarter.
Guidance
For 2024, Carrier expects sales of more than $25.5 billion.
The adjusted operating margin is expected to be 15.5%.
CARR anticipates adjusted earnings between $2.80 per share and $2.90 per share.
The company expects a free cash flow of nearly $0.4 billion.
Zacks Rank & Stocks to Consider
Carrier Global currently carries a Zacks Rank #3 (Hold).
CARR’s shares have increased 14.8% compared with the Zacks Computer and Technology sector’s rise of 18.6% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant Technology Solutions (CTSH - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, while Apple and Cognizant Technology Solutions carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 38.4% year to date. ANET is set to report second-quarter 2024 results on Jul 30.
Apple’s shares have increased 13.5% year to date. AAPL is set to report third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have moved down 3.7% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
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Carrier (CARR) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Carrier Global (CARR - Free Report) reported second-quarter 2024 adjusted earnings of 87 cents per share, which surpassed the Zacks Consensus Estimate by 2.35%. The figure increased 10.1% year over year.
Net sales of $6.68 billion missed the Zacks Consensus Estimate by 5.13% but increased 11.6% year over year.
Product sales (89.8% of net sales) of $6 billion increased 12.1% year over year. Service sales (10.2% of net sales) of $685 million were up 7.5% year over year.
Quarter Details
HVAC revenues of $4.97 billion contributed 74.3% to net sales. The figure missed the Zacks Consensus Estimate by 0.47% and increased 17.9% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote
Refrigeration revenues of $973 million were up 0.1% year over year and contributed 14.5% to net sales. The figure missed the consensus mark by 1.29%.
Fire & Security revenues of $871 million were down 6.5% year over year and contributed 13% to net sales. The reported figure missed the consensus mark by 4.70%.
Research & development (R&D) expenses increased 23.8% year over year to $187 million. As a percentage of revenues, R&D expenses expanded 30 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses rose 24.4% year over year to $975 million. As a percentage of revenues, SG&A expenses increased 150 bps year over year.
Adjusted operating margin expanded 140 bps on a year-over-year basis to 18.9%.
Adjusted operating margin in the HVAC segment expanded 120 bps year over year to 19.9%.
The Refrigeration segment reported an adjusted operating margin of 12.1%, which contracted 10 bps year over year.
Fire & Security’s adjusted operating margin was 17.8%, expanding 310 bps year over year.
Balance Sheet
As of Jun 30, 2024, Carrier had cash and cash equivalents of $2.91 billion compared with $1.31 billion as of Mar 31, 2024.
Total debt (including the current portion) as of Jun 30, 2024, was $13.32 billion compared with $16.89 billion as of Mar 31, 2024.
In the reported quarter, Carrier generated $700 million in cash from operations, up from $40 million in the prior quarter.
Capital expenditure was $111 million in the second quarter of 2024. Free cash flow was $549 million for the reported quarter.
Guidance
For 2024, Carrier expects sales of more than $25.5 billion.
The adjusted operating margin is expected to be 15.5%.
CARR anticipates adjusted earnings between $2.80 per share and $2.90 per share.
The company expects a free cash flow of nearly $0.4 billion.
Zacks Rank & Stocks to Consider
Carrier Global currently carries a Zacks Rank #3 (Hold).
CARR’s shares have increased 14.8% compared with the Zacks Computer and Technology sector’s rise of 18.6% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant Technology Solutions (CTSH - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, while Apple and Cognizant Technology Solutions carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 38.4% year to date. ANET is set to report second-quarter 2024 results on Jul 30.
Apple’s shares have increased 13.5% year to date. AAPL is set to report third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have moved down 3.7% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.