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Carlisle (CSL) Up 0.1% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Carlisle (CSL - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carlisle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Carlisle reported second-quarter 2024 adjusted earnings of $6.24 per share, which surpassed the Zacks Consensus Estimate of $5.84. The bottom line increased 32.8% year over year.
Carlisle’s total revenues of $1.5 billion beat the consensus estimate of $1.4 billion. Also, the top line increased 11% year over year.
Segmental Discussion
Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.
Revenues from the Carlisle Construction Materials segment increased 15% year over year to $1.1 billion. Our estimate for segmental revenues was $1 billion. Organic revenues increased 12.7%, driven by the normalization of inventory in the channels and strong re-roofing activity from pent-up demand. Adjusted EBITDA of $364 million increased 23% year over year.
Revenues from the Carlisle Weatherproofing Technologies segment increased 0.6% year over year to $362 million due to lower pricing. Our estimate for segmental revenues was $379.1 million. Organic revenues slipped 0.6%. Adjusted EBITDA of $81 million jumped 0.7% year over year.
Margin Profile
Carlisle’s cost of sales increased 6.3% year over year to $881.7 million. Selling and administrative expenses increased 15.6% to $189.3 million. Research and development expenses totaled $9.3 million, up 38.8% year over year.
Carlisle recorded operating income of $377.5 million, up 22.3% year over year. The operating margin increased to 26.0% from 23.6% in the year-ago quarter. Our estimate for the operating margin was pegged at 23.5%.
Balance Sheet and Cash Flow
At the end of the second quarter, Carlisle had cash and cash equivalents of $1.7 billion compared with $576.7 million at the end of fourth-quarter 2023. Long-term debt (including the current portion) was $2.3 billion, relatively stable with the figure reported at the end of fourth-quarter 2023.
In the first six months of 2024, Carlisle generated net cash of $346.9 million from operating activities compared with $370.7 million a year ago.
In the same period, Carlisle rewarded its shareholders with a dividend payment of $81.7 million, up 5.8% year over year. The company bought back shares worth $700 million, up 180% year over year.
2024 Outlook Raised
Management now expects revenues to increase 12% from a year ago compared with 10% anticipated earlier. Revenues from the Carlisle Construction Materials segment are estimated to increase by approximately 15% while Carlisle Weatherproofing Technologies segment revenues are projected to grow approximately 3% on a year-over-year basis.
It anticipates adjusted EBITDA margin to expand more than 150 bps.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Carlisle has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Carlisle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Carlisle (CSL) Up 0.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Carlisle (CSL - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carlisle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Carlisle Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
Carlisle reported second-quarter 2024 adjusted earnings of $6.24 per share, which surpassed the Zacks Consensus Estimate of $5.84. The bottom line increased 32.8% year over year.
Carlisle’s total revenues of $1.5 billion beat the consensus estimate of $1.4 billion. Also, the top line increased 11% year over year.
Segmental Discussion
Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.
Revenues from the Carlisle Construction Materials segment increased 15% year over year to $1.1 billion. Our estimate for segmental revenues was $1 billion. Organic revenues increased 12.7%, driven by the normalization of inventory in the channels and strong re-roofing activity from pent-up demand. Adjusted EBITDA of $364 million increased 23% year over year.
Revenues from the Carlisle Weatherproofing Technologies segment increased 0.6% year over year to $362 million due to lower pricing. Our estimate for segmental revenues was $379.1 million. Organic revenues slipped 0.6%. Adjusted EBITDA of $81 million jumped 0.7% year over year.
Margin Profile
Carlisle’s cost of sales increased 6.3% year over year to $881.7 million. Selling and administrative expenses increased 15.6% to $189.3 million. Research and development expenses totaled $9.3 million, up 38.8% year over year.
Carlisle recorded operating income of $377.5 million, up 22.3% year over year. The operating margin increased to 26.0% from 23.6% in the year-ago quarter. Our estimate for the operating margin was pegged at 23.5%.
Balance Sheet and Cash Flow
At the end of the second quarter, Carlisle had cash and cash equivalents of $1.7 billion compared with $576.7 million at the end of fourth-quarter 2023. Long-term debt (including the current portion) was $2.3 billion, relatively stable with the figure reported at the end of fourth-quarter 2023.
In the first six months of 2024, Carlisle generated net cash of $346.9 million from operating activities compared with $370.7 million a year ago.
In the same period, Carlisle rewarded its shareholders with a dividend payment of $81.7 million, up 5.8% year over year. The company bought back shares worth $700 million, up 180% year over year.
2024 Outlook Raised
Management now expects revenues to increase 12% from a year ago compared with 10% anticipated earlier. Revenues from the Carlisle Construction Materials segment are estimated to increase by approximately 15% while Carlisle Weatherproofing Technologies segment revenues are projected to grow approximately 3% on a year-over-year basis.
It anticipates adjusted EBITDA margin to expand more than 150 bps.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Carlisle has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Carlisle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.