Carlisle Companies Incorporated (CSL - Free Report) has failed to impress investors with its recent operational performance due to weakness in the Carlisle Construction Materials (CCM) segment, high debt level and foreign currency headwinds. These factors are likely to impede the company’s performance in the quarters ahead.
Let’s discuss the factors, which are likely to continue taking a toll on this Zacks Rank #4 (Sell) company.
Business Weakness: Project delays, uncertainty caused by higher interest rates and prolonged distributor destocking are affecting the performance of Carlisle’s CCM segment. The company expects the segment’s sales to decline 3-5% in 2023 from the year-ago period. Lower volumes from a slowdown in the residential construction market and project delays are adversely affecting Carlisle’s Carlisle Weatherproofing Technologies segment. Carlisle expects the segment’s revenues to decline approximately 10% in 2023.
High Debt Level: The company's high debt levels raise concerns. In the last five fiscal years (2018-2022), the company’s long-term debt witnessed a CAGR of 7.5%. Its long-term debt balance at the end of third-quarter 2023 was $2,283.2 million compared with $2,281.1 million reported at the end of 2022.
Southbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for CSL’s 2023 earnings has been revised 13.6% downward.
Zacks Rank & Stocks to Consider
General Electric currently carries a Zacks Rank #3 (Hold). Some better-ranked companies have been discussed below.
Federal Signal Corporation (FSS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 62.1% in the past year.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for ITT’s 2023 earnings has increased 2% in the past 60 days. Shares of ITT have jumped 39.7% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 5%. The stock has risen 35% in the past year.
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Carlisle Companies Incorporated (CSL - Free Report) has failed to impress investors with its recent operational performance due to weakness in the Carlisle Construction Materials (CCM) segment, high debt level and foreign currency headwinds. These factors are likely to impede the company’s performance in the quarters ahead.
Let’s discuss the factors, which are likely to continue taking a toll on this Zacks Rank #4 (Sell) company.
Business Weakness: Project delays, uncertainty caused by higher interest rates and prolonged distributor destocking are affecting the performance of Carlisle’s CCM segment. The company expects the segment’s sales to decline 3-5% in 2023 from the year-ago period. Lower volumes from a slowdown in the residential construction market and project delays are adversely affecting Carlisle’s Carlisle Weatherproofing Technologies segment. Carlisle expects the segment’s revenues to decline approximately 10% in 2023.
High Debt Level: The company's high debt levels raise concerns. In the last five fiscal years (2018-2022), the company’s long-term debt witnessed a CAGR of 7.5%. Its long-term debt balance at the end of third-quarter 2023 was $2,283.2 million compared with $2,281.1 million reported at the end of 2022.
Southbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for CSL’s 2023 earnings has been revised 13.6% downward.
Zacks Rank & Stocks to Consider
General Electric currently carries a Zacks Rank #3 (Hold). Some better-ranked companies have been discussed below.
Federal Signal Corporation (FSS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FSS delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2023 earnings has increased 3.3%. The stock has risen 62.1% in the past year.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 8%.
The consensus estimate for ITT’s 2023 earnings has increased 2% in the past 60 days. Shares of ITT have jumped 39.7% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 5%. The stock has risen 35% in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Get the latest research report on AOS - FREE
Get the latest research report on ITT - FREE
Get the latest research report on CSL - FREE
Get the latest research report on FSS - FREE