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Carrier Global (CARR) to Report Q3 Earnings: What's in Store?

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Carrier Global (CARR - Free Report) is set to report third-quarter 2020 results on Oct 29.

The Zacks Consensus Estimate for third-quarter earnings stayed at 48 cents per share over the past 30 days and indicates 45% growth from the previous quarter’s reported figure.

The consensus mark for revenues is pegged at $4.35 billion, indicating an increase of 9.6% from the previous quarter’s reported figure.

Notably, on Apr 3, Carrier Global debuted as an independent, publicly traded company after successfully completing its separation from United Technologies. The company offers HVAC, refrigeration, and fire and security solutions for residential, commercial, industrial, and smart cold-chain applications.

The company reported second-quarter 2020 adjusted earnings of 33 cents per share that beat the consensus mark by 22.2%. However, the figure decreased 54.8% year over year.

Carrier Global Corporation Price and EPS Surprise

 

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation price-eps-surprise | Carrier Global Corporation Quote

Let’s see how things are shaping up for the upcoming announcement.

Factors to Consider

Carrier Global’s third-quarter 2020 top line is expected to have benefited from recovered demand for HVAC.  Solid order trend for Air Purifiers required for improving indoor air quality is a catalyst.

Notably, since the launch of BluEdge service platform, Carrier’s HVAC business has signed more than 200 service agreements. Refrigeration has signed service contracts covering more than 900 units for truck, trailer and intermodal refrigerated transportation applications in North America.

Markedly, HVAC revenues accounted for 57.7% of net sales in the second-quarter. Net sales are expected to grow sequentiallyin the to-be-reported quarter despite severe disruptions caused by the coronavirus outbreak.

Nonetheless, weakness in the North America and Europe truck trailer space is expected to have negatively impacted refrigeration sales, which accounted for 17.6% second-quarter net sales.

Moreover, sluggish fire & safety solutions business is a headwind. Segment revenues accounted for 26.6% of net sales in the second quarter.

However, the Carrier 360 program is expected to have boosted profitability through costs savings.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Carrier Global has an Earnings ESP of +6.70%, but a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Alphabet (GOOGL - Free Report) has an Earnings ESP of +7.4% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arrow Electronics (ARW - Free Report) has an Earnings ESP of +3.93% and is #2 Ranked.

Apple (AAPL - Free Report) has an Earnings ESP of +2.97% and is Zacks #3 Ranked.

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