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Trane Technologies (TT) Q2 Earnings Beat Estimates, Rise Y/Y

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Trane Technologies plc (TT - Free Report) reported better-than-expected second-quarter 2024 results.

Adjusted EPS of $3.3 surpassed the Zacks Consensus Estimate by 7.1% and increased 23.1% year over year.

Revenues of $5.3 billion beat the consensus mark by 3.8% and increased 13% year over year on a reported basis, as well as organically. Bookings were up 19% year over year on a reported basis, as well as organically.

Trane Technologies plc Price, Consensus and EPS Surprise 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 $4.3 billion were higher than our estimate of $4 billion and increased 16% year over year on a reported basis, as well as organically. Bookings were up 23% on a reported basis, as well as organically, at $4.2 billion.

Europe, Middle East, and Africa segment’s revenues came in at $645.3 million, up 4% year over year on a reported basis and 5% organically, missing our estimate of $661.2 million. Bookings were up 10% year over year on a reported basis, as well as organically, at $669.4 million.

Revenues from the Asia Pacific segment were down 6% year over year on a reported basis and 3% on an organic basis, to $371.2 million, missing our estimate of $437.5 million. Bookings of $448.8 million decreased 3% on a reported basis and were flat organically.

Operating Margin Performance

Adjusted operating income came in at $1 billion, up 21% year over year. Adjusted operating margin improved 140 basis points to 19.4%.

Key Balance Sheet and Cash Flow Figures

Trane ended the quarter with a cash balance of $959 million compared with $850 million in the previous quarter. The debt balance was $5.3 billion compared with $4.9 billion in the previous quarter. It generated $696 million of cash from operating activities and free cash of $635 million in the quarter.

2024 Guidance

The company raised its 2024 guidance. It currently expects revenues to increase around 10% compared with the previous expectation of 8% to 9% growth.

Adjusted EPS is expected to be around $10.80 compared with the previous anticipation of $10.30 to $10.40. The revised guided range is higher than the Zacks Consensus Estimate of $10.49.

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

Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.

EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.

ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.

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