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Carlisle (CSL) Q2 Earnings & Revenues Top Estimates, Up Y/Y

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Carlisle Companies Incorporated’s(CSL - Free Report) second-quarter 2018 earnings came in at $1.97 per share, surpassing the Zacks Consensus Estimate of $1.66. The bottom line increased 25.5% from the year-ago tally on the back of strong growth in the top line.

The company generated record revenues of $1,236.1 million, up 25.6% year over year. The reported figure outpaced the Zacks Consensus Estimate of $1,178 million. The improvement was driven by positive contribution from acquired assets, favorable impact from foreign currency movements and adoption of the company's new revenue recognition standard.

Segmental Details

Carlisle currently generates revenues from its four segments, which are discussed below.

Revenues from the Carlisle Construction Materials segment totaled $828.6 million, which increased 31.3% year over year. It represented 67% of the company's second-quarter revenues. The segment's record revenues were driven by strong performance from its commercial construction business and continued progress on price realization.

The Carlisle Interconnect Technologies segment generated revenues of $237.7 million, up 17.8% year over year, led by strength in the Aerospace and Test & Measurement markets. Notably, it represented 19.2% of second-quarter revenues.

The Carlisle Fluid Technologies segment's revenues were $73.3 million, up 3.2% year over year and accounted for 5.9% of the company's second-quarter revenues. The improvement came primarily on the back of impressive growth in automotive refinish and general industrial markets, partially offset by weakness in the transportation market.

Revenues at the Carlisle Brake & Friction segment were up 20.8% year over year to $96.5 million. It represented 7.8% of second-quarter revenues. This segment's solid performance can be attributed to continued recovery in off-highway vehicle markets, major end markets of construction, agriculture and mining.

Costs & Margins

In the second quarter, Carlisle's cost of goods sold increased 29.6% year over year to $903.9 million. The same metric, as a percentage of revenues, came in at 73.1% compared with 70.9% in the prior-year quarter. Selling and administrative expenses, as a percentage of revenues, were 12.9% compared with 18.2% in the year-ago quarter.

Operating margin of the company contracted 200 basis points year over year to 12.9%.

Balance Sheet

As of Jun 30, 2018, Carlisle's cash and cash equivalents were $762.4 million compared with $136.1 million a year ago. Long-term debt remained flat at $1,586.9 million compared with its value as of Dec 31, 2017.

Outlook

Concurrent with the earnings results, for 2018, the company anticipates revenue growth to be about 20%.

Zacks Rank & Stocks to Consider

Carlisle currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks are Adobe Systems Incorporated (ADBE - Free Report) , Honeywell International Inc. (HON - Free Report) and AMETEK, Inc. (AME - Free Report) . While Adobe Systems sports a Zacks Rank #1 (Strong Buy), Honeywell International and AMETEK carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Adobe Systems surpassed estimates in each of the trailing four quarters with an average beat of 8.94%.

Honeywell International exceeded estimates in each of the trailing four quarters with an average beat of 2.44%.

AMETEK surpassed estimates in each of the trailing four quarters with an average beat of 6.03%.

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