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Carrier Global Beats on Q4 Earnings & Revenue Estimates, Shares Up
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Carrier Global (CARR - Free Report) reported fourth-quarter 2024 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate by 5.88%. The figure surged 50% year over year.
Net sales of $5.15 billion missed the Zacks Consensus Estimate by 3.48% but increased 19.3% year over year. Product sales (88% of net sales) of $4.53 billion increased 21.6% year over year. Service sales (12% of net sales) of $618 million were up 4.7% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
HVAC revenues of $4.51 billion contributed 87.6% to net sales and increased 36.9% year over year. Sales increased 11% organically.
Americas sales were up high-teens organically, driven by continued strength in Commercial and North America Residential, both up double-digits on a year-over-year basis. EMEA sales were flat organically, with double-digit growth in Commercial. Asia Pacific sales were slightly positive, driven by strength in Japan and South Asia.
Refrigeration revenues of $680 million were down 33.6% year over year and contributed 13.2% to net sales.
Research & development (R&D) expenses increased 17.4% year over year to $162 million. As a percentage of revenues, R&D expenses declined 10 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses rose 9% year over year to $803 million. As a percentage of revenues, SG&A expenses decreased 150 bps year over year.
Adjusted operating margin expanded 360 bps on a year-over-year basis to 13.2%.
Adjusted operating margin in the HVAC segment expanded 250 bps year over year to 14.6%. The Refrigeration segment reported an adjusted operating margin of 12.1%, which expanded 150 bps year over year.
CARR’s Balance Sheet
As of Dec. 31, 2024, Carrier had cash and cash equivalents of $3.97 billion compared with $2.22 billion as of Sept. 30, 2024.
Total debt (including the current portion) as of Dec. 31, 2024, was $12.28 billion compared with $12.43 billion as of Sept. 30, 2024.
Carrier Offers Positive 2025 Outlook
For 2025, Carrier expects to achieve sales between $22.5 billion and $23 billion, reflecting mid-single-digit organic growth.
Adjusted operating margin is expected between 16.5% and 17%, up 100 bps over 2024.
The company anticipates adjusted earnings between $2.95 per share and $3.05 per share, up mid to high-teens.
Free cash flow is expected between $2.4 billion and $2.6 billion.
Arista Networks is scheduled to report its fourth-quarter 2024 results on Feb. 18. Twilio is set to report fourth-quarter 2024 results on Feb. 13, while DoorDash is scheduled to report its fourth-quarter 2024 results on Feb. 11.
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Carrier Global Beats on Q4 Earnings & Revenue Estimates, Shares Up
Carrier Global (CARR - Free Report) reported fourth-quarter 2024 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate by 5.88%. The figure surged 50% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net sales of $5.15 billion missed the Zacks Consensus Estimate by 3.48% but increased 19.3% year over year. Product sales (88% of net sales) of $4.53 billion increased 21.6% year over year. Service sales (12% of net sales) of $618 million were up 4.7% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote
CARR shares were up 1.15% in pre-market trading.
CARR’s Quarter in Details
HVAC revenues of $4.51 billion contributed 87.6% to net sales and increased 36.9% year over year. Sales increased 11% organically.
Americas sales were up high-teens organically, driven by continued strength in Commercial and North America Residential, both up double-digits on a year-over-year basis. EMEA sales were flat organically, with double-digit growth in Commercial. Asia Pacific sales were slightly positive, driven by strength in Japan and South Asia.
Refrigeration revenues of $680 million were down 33.6% year over year and contributed 13.2% to net sales.
Research & development (R&D) expenses increased 17.4% year over year to $162 million. As a percentage of revenues, R&D expenses declined 10 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses rose 9% year over year to $803 million. As a percentage of revenues, SG&A expenses decreased 150 bps year over year.
Adjusted operating margin expanded 360 bps on a year-over-year basis to 13.2%.
Adjusted operating margin in the HVAC segment expanded 250 bps year over year to 14.6%. The Refrigeration segment reported an adjusted operating margin of 12.1%, which expanded 150 bps year over year.
CARR’s Balance Sheet
As of Dec. 31, 2024, Carrier had cash and cash equivalents of $3.97 billion compared with $2.22 billion as of Sept. 30, 2024.
Total debt (including the current portion) as of Dec. 31, 2024, was $12.28 billion compared with $12.43 billion as of Sept. 30, 2024.
Carrier Offers Positive 2025 Outlook
For 2025, Carrier expects to achieve sales between $22.5 billion and $23 billion, reflecting mid-single-digit organic growth.
Adjusted operating margin is expected between 16.5% and 17%, up 100 bps over 2024.
The company anticipates adjusted earnings between $2.95 per share and $3.05 per share, up mid to high-teens.
Free cash flow is expected between $2.4 billion and $2.6 billion.
Carrier expects to repurchase roughly $3 billion.
Zacks Rank & Other Stocks to Consider
Carrier currently carries a Zacks Rank #4 (Sell).
Arista Networks (ANET - Free Report) , Twilio (TWLO - Free Report) and DoorDash (DASH - Free Report) are some better-ranked stocks in the broader sector. While ANET and TWLO sport a Zacks Rank #1 (Strong Buy) each, DASH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks is scheduled to report its fourth-quarter 2024 results on Feb. 18. Twilio is set to report fourth-quarter 2024 results on Feb. 13, while DoorDash is scheduled to report its fourth-quarter 2024 results on Feb. 11.