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Carrier (CARR) Q1 Earnings Beat Estimates, Revenues Up Y/Y
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Carrier Global (CARR - Free Report) reported first-quarter 2024 adjusted earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate by 24%. The figure increased 19% year over year.
Net sales of $6.18 billion missed the Zacks Consensus Estimate by 1.38% but increased 17.2% year over year.
Product sales (89.6% of net sales) of $5.54 billion increased 18.3% year over year. Service sales (10.4% of net sales) of $640 million were up 9% year over year.
Quarter Details
HVAC revenues of $4.54 billion contributed 73.5% to net sales. The figure beat the Zacks Consensus Estimate by 3.49% and increased 25% year over year.
Carrier Global Corporation Price, Consensus and EPS Surprise
Refrigeration revenues of $884 million were down 2% year over year and contributed 14.3% to net sales. The figure missed the consensus mark by 1.41%.
Fire & Security revenues of $887 million were up 2% year over year and contributed 14.3% to net sales. The reported figure beat the consensus mark by 6.71%.
Research & development (R&D) expenses increased 61.2% year over year to $224 million. As a percentage of revenues, R&D expenses increased 100 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses grew 36.6% year over year to $985 million. As a percentage of revenues, SG&A expenses increased 230 bps year over year.
Adjusted operating margin expanded 280 bps on a year-over-year basis to 15%.
Adjusted operating margin in the HVAC segment expanded 240 bps year over year to 15.9%.
The Refrigeration segment reported an adjusted operating margin of 11.2%, which contracted 120 bps year over year.
Fire & Security’s adjusted operating margin was 18.5%, which expanded 610 bps year over year.
Balance Sheet
As of Mar 31, 2024, Carrier had cash and cash equivalents of $1.31 billion compared with $10.02 billion as of Dec 31, 2023.
Total debt (including the current portion) as of Mar 31, 2024, was $16.89 billion compared with $14.29 billion as of Dec 31, 2023.
In the reported quarter, Carrier generated $40 million in cash from operations, down from $1.06 billion in the prior quarter.
Capital expenditure was $104 million in the first quarter of 2024. Free cash outflow was $64 million for the reported quarter.
Guidance
For 2024, Carrier expects sales of more than $26 billion. The Zacks Consensus Estimate for sales is pegged at $26.36 billion, indicating 19.31% year-over-year growth.
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 Zacks Consensus Estimate for the same is pegged at $2.82 per share, indicating 3.30% year-over-year growth.
The company expects a free cash flow of roughly $0.4 billion.
Zacks Rank & Stocks to Consider
Carrier Global currently carries a Zacks Rank #3 (Hold).
CARR’s shares have declined 4.7% compared with the Zacks Computer and Technology sector’s rise of 7.7% year to date.
Here are some better-ranked stocks worth considering in the broader sector.
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Carrier (CARR) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Carrier Global (CARR - Free Report) reported first-quarter 2024 adjusted earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate by 24%. The figure increased 19% year over year.
Net sales of $6.18 billion missed the Zacks Consensus Estimate by 1.38% but increased 17.2% year over year.
Product sales (89.6% of net sales) of $5.54 billion increased 18.3% year over year. Service sales (10.4% of net sales) of $640 million were up 9% year over year.
Quarter Details
HVAC revenues of $4.54 billion contributed 73.5% to net sales. The figure beat the Zacks Consensus Estimate by 3.49% and increased 25% 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 $884 million were down 2% year over year and contributed 14.3% to net sales. The figure missed the consensus mark by 1.41%.
Fire & Security revenues of $887 million were up 2% year over year and contributed 14.3% to net sales. The reported figure beat the consensus mark by 6.71%.
Research & development (R&D) expenses increased 61.2% year over year to $224 million. As a percentage of revenues, R&D expenses increased 100 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses grew 36.6% year over year to $985 million. As a percentage of revenues, SG&A expenses increased 230 bps year over year.
Adjusted operating margin expanded 280 bps on a year-over-year basis to 15%.
Adjusted operating margin in the HVAC segment expanded 240 bps year over year to 15.9%.
The Refrigeration segment reported an adjusted operating margin of 11.2%, which contracted 120 bps year over year.
Fire & Security’s adjusted operating margin was 18.5%, which expanded 610 bps year over year.
Balance Sheet
As of Mar 31, 2024, Carrier had cash and cash equivalents of $1.31 billion compared with $10.02 billion as of Dec 31, 2023.
Total debt (including the current portion) as of Mar 31, 2024, was $16.89 billion compared with $14.29 billion as of Dec 31, 2023.
In the reported quarter, Carrier generated $40 million in cash from operations, down from $1.06 billion in the prior quarter.
Capital expenditure was $104 million in the first quarter of 2024. Free cash outflow was $64 million for the reported quarter.
Guidance
For 2024, Carrier expects sales of more than $26 billion. The Zacks Consensus Estimate for sales is pegged at $26.36 billion, indicating 19.31% year-over-year growth.
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 Zacks Consensus Estimate for the same is pegged at $2.82 per share, indicating 3.30% year-over-year growth.
The company expects a free cash flow of roughly $0.4 billion.
Zacks Rank & Stocks to Consider
Carrier Global currently carries a Zacks Rank #3 (Hold).
CARR’s shares have declined 4.7% compared with the Zacks Computer and Technology sector’s rise of 7.7% year to date.
Here are some better-ranked stocks worth considering in the broader sector.
Arista Networks (ANET - Free Report) Criteo (CRTO - Free Report) and Pinterest (PINS - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 8.2% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Criteo shares have gained 46% year to date. CRTO is set to report its first-quarter 2024 results on May 2.
Pinterest shares have declined 11.3% year to date. PINS is set to report its first-quarter 2024 results on Apr 30.