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Trane Technologies (TT) Q3 Earnings Beat on Strong Volumes
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Trane Technologies plc TT delivered robust results in the third quarter of 2023, driven by high recurring revenues and strong margin performance. The company’s strong volume growth, positive price realization and productivity significantly aided the performance by offsetting inflation in the quarter. The stock has gained 2.2% since the earnings release in response to the better-than-expected results.
Trane Technologies posted adjusted earnings per share (EPS) of $2.79, surpassing the Zacks Consensus Estimate by 4.9%. This represents 22.9% year-over-year growth in the bottom line. The company’s revenues also saw substantial growth, rising 11.7% compared with the previous year, reaching $4.9 billion. The top line exceeded the consensus estimate by 2.1%.
Trane Technologies plc Price, Consensus and EPS Surprise
The Americas segment’s adjusted operating income came in at $750.6 million, up 19.3% year over year. This compares favorably with our estimation of an operating income of $727.2 million, up 15.4% year over year. Adjusted operating margin increased 120 basis points (bps) year over year to 19.3%. This compares with our expectation of an adjusted operating margin of 19.5%, up 140 bps year over year. Organic revenues in the segment grew 11% year over year to $3.9 billion.
The EMEA segment’s adjusted operating income came in at $118.4 million, up 37% year over year. This, however, compares unfavorably with our expectation of an operating income of $121 million, up 40.2% year over year. Adjusted operating margin increased 230 bps year over year to 19.1%. This compares with our expectation of an adjusted operating margin of 21.2%, up 440 bps year over year. Organic revenues in the segment grew 3% year over year to $619 million.
The Asia Pacific segment’s adjusted operating income came in at $82.6 million, up 9% year over year. This compares unfavorably with our expectation of an operating income of $92.8 million, up 21.9% year over year. Adjusted operating margin increased 180 bps year over year to 22%. This compares with our expectation of an adjusted operating income margin of 21.7%, up 150 bps year over year. Organic revenues in the segment declined 1% year over year to $376.3 million.
In each of the segments, high incremental business reinvestment aided sustainability, innovation and growth initiatives.
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Trane Technologies (TT) Q3 Earnings Beat on Strong Volumes
Trane Technologies plc TT delivered robust results in the third quarter of 2023, driven by high recurring revenues and strong margin performance. The company’s strong volume growth, positive price realization and productivity significantly aided the performance by offsetting inflation in the quarter. The stock has gained 2.2% since the earnings release in response to the better-than-expected results.
Trane Technologies posted adjusted earnings per share (EPS) of $2.79, surpassing the Zacks Consensus Estimate by 4.9%. This represents 22.9% year-over-year growth in the bottom line. The company’s revenues also saw substantial growth, rising 11.7% compared with the previous year, reaching $4.9 billion. The top line exceeded the consensus estimate by 2.1%.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
The Americas segment’s adjusted operating income came in at $750.6 million, up 19.3% year over year. This compares favorably with our estimation of an operating income of $727.2 million, up 15.4% year over year. Adjusted operating margin increased 120 basis points (bps) year over year to 19.3%. This compares with our expectation of an adjusted operating margin of 19.5%, up 140 bps year over year. Organic revenues in the segment grew 11% year over year to $3.9 billion.
The EMEA segment’s adjusted operating income came in at $118.4 million, up 37% year over year. This, however, compares unfavorably with our expectation of an operating income of $121 million, up 40.2% year over year. Adjusted operating margin increased 230 bps year over year to 19.1%. This compares with our expectation of an adjusted operating margin of 21.2%, up 440 bps year over year. Organic revenues in the segment grew 3% year over year to $619 million.
The Asia Pacific segment’s adjusted operating income came in at $82.6 million, up 9% year over year. This compares unfavorably with our expectation of an operating income of $92.8 million, up 21.9% year over year. Adjusted operating margin increased 180 bps year over year to 22%. This compares with our expectation of an adjusted operating income margin of 21.7%, up 150 bps year over year. Organic revenues in the segment declined 1% year over year to $376.3 million.
In each of the segments, high incremental business reinvestment aided sustainability, innovation and growth initiatives.
Trane Technologies 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
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.