Trane Technologies plc (TT - Free Report) reported better-than-expected first-quarter 2024 results.
Adjusted EPS of $1.94 surpassed the Zacks Consensus Estimate by 18.3% and increased 37.6% year over year.
Revenues of $4.2 billion beat the consensus mark by 5.7% and increased 15% year over year on a reported basis and 14% organically. Bookings were up 18% year over year on a reported basis and 17% organically.
Revenues and Bookings
The Americas segment’s revenues of $3.3 billion were higher than our estimate of $3.1 billion and increased 17% year over year on a reported basis and 15% organically. Bookings were up 21% on a reported basis and 20% organically, at $4 billion.
Europe, Middle East and Africa segment’s revenues came in at $553.4 million, up 8% year over year on a reported basis and 4% organically, missing our estimate of $603.6 million. Bookings were up 12% year over year on a reported basis and 7% organically, at $660.2 million.
Revenues from the Asia Pacific segment were up 11% year over year on a reported basis and 16% on an organic basis, to $327.3 million, beating our estimate of $314 million. Bookings of $396.9 million increased 2% on a reported basis and 6% organically.
Operating Margin Performance
Adjusted operating income came in at $640 million, up 36% year over year. Adjusted operating margin improved 230 basis points to 15.2%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $850 million compared with $1.1 billion in the previous quarter. The debt balance was $4.9 billion compared with $4.8 billion in the previous quarter. It generated $254 million of cash from operating activities and free cash of $175 million in the quarter.
2024 Guidance
The company raised its 2024 guidance. It currently expects revenues to increase 8% to 9% on a reported as well as organic basis. The previous expectation was 7% to 8% growth on a reported basis and 6% to 7% growth on an organic basis.
Adjusted EPS is expected to be between $10.30 and $10.40 up from $10 to $10.3 expected previously. The revised guided range is higher than the Zacks Consensus Estimate of $10.20.
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Business Service Stocks
Omnicom (OMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax (EFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, ahead of the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.
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Trane Technologies plc (TT - Free Report) reported better-than-expected first-quarter 2024 results.
Adjusted EPS of $1.94 surpassed the Zacks Consensus Estimate by 18.3% and increased 37.6% year over year.
Revenues of $4.2 billion beat the consensus mark by 5.7% and increased 15% year over year on a reported basis and 14% organically. Bookings were up 18% year over year on a reported basis and 17% organically.
Revenues and Bookings
The Americas segment’s revenues of $3.3 billion were higher than our estimate of $3.1 billion and increased 17% year over year on a reported basis and 15% organically. Bookings were up 21% on a reported basis and 20% organically, at $4 billion.
Europe, Middle East and Africa segment’s revenues came in at $553.4 million, up 8% year over year on a reported basis and 4% organically, missing our estimate of $603.6 million. Bookings were up 12% year over year on a reported basis and 7% organically, at $660.2 million.
Revenues from the Asia Pacific segment were up 11% year over year on a reported basis and 16% on an organic basis, to $327.3 million, beating our estimate of $314 million. Bookings of $396.9 million increased 2% on a reported basis and 6% organically.
Operating Margin Performance
Adjusted operating income came in at $640 million, up 36% year over year. Adjusted operating margin improved 230 basis points to 15.2%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $850 million compared with $1.1 billion in the previous quarter. The debt balance was $4.9 billion compared with $4.8 billion in the previous quarter. It generated $254 million of cash from operating activities and free cash of $175 million in the quarter.
2024 Guidance
The company raised its 2024 guidance. It currently expects revenues to increase 8% to 9% on a reported as well as organic basis. The previous expectation was 7% to 8% growth on a reported basis and 6% to 7% growth on an organic basis.
Adjusted EPS is expected to be between $10.30 and $10.40 up from $10 to $10.3 expected previously. The revised guided range is higher than the Zacks Consensus Estimate of $10.20.
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Business Service Stocks
Omnicom (OMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax (EFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, ahead of the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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