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Adjusted EPS of $1.12 surpassed the Zacks Consensus Estimate by 12% and increased 10.9% year over year. Revenues of $3.4 billion beat the consensus mark by 6.2% and increased 11.2% year over year on a reported basis and 12% organically.
Strong results in the quarter were driven by robust demand. Bookings were up 5% year over year on a reported basis and 6% organically, to $4.3 billion.
Trane’s shares have declined 20.2% over the past year compared with 66.1% decline of the industry it belongs to.
Revenues and Bookings
The Americas segment’s revenues of $2.6 billion increased 13% year over year on a reported as well as an organic basis. Bookings increased 6% on a reported basis as well as organically, to $3.4 billion.
Europe, Middle East and Africa (EMEA) segment’s revenues came in at $441 million, down 1% year over year on a reported basis but up 6% organically. Bookings were down 6% year over year on a reported basis and stayed flat organically at $536.3 million.
Revenues from the Asia Pacific segment were up 13% year over year on a reported basis and 14% on an organic basis, to $281 million. Bookings of $350.4 million increased 13% on a reported basis and 14% organically.
Margin Performance
Adjusted EBITDA came in at $462 million, up 6% year over year. Adjusted EBITDA margin declined 70 basis points (bps) to 13.8%. Adjusted operating income of $385 million increased 5% year over year while adjusted operating margin declined 70 bps to 11.5%.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane ended the quarter with cash balance of $1.3 billion compared with $2.7 billion at the end of the previous quarter. Debt balance was $4.8 billion, flat with the previous quarter’s tally.
The company used $184.3 million of cash in operating activities while capital expenditures were $74.8 million. Free cash flow was $27.3 million.
2022 Guidance
Trane expects revenues to increase 9% on a reported basis and 10% on an organic basis. Adjusted EPS is expected to be between $6.95 to $7.15, the midpoint ($7.05) of which is above the current Zacks Consensus Estimate of $7.04.
ManpowerGroup’s quarterly results beat earnings and revenue estimates. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.
MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.
Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.
OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax's adjusted earnings of $2.22 per share beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.
EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.
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Trane Technologies' (TT) Q1 Earnings Beat Estimates, Up Y/Y
Trane Technologies plc (TT - Free Report) reported better-than-expected third-quarter 2021 results.
Adjusted EPS of $1.12 surpassed the Zacks Consensus Estimate by 12% and increased 10.9% year over year. Revenues of $3.4 billion beat the consensus mark by 6.2% and increased 11.2% year over year on a reported basis and 12% organically.
Strong results in the quarter were driven by robust demand. Bookings were up 5% year over year on a reported basis and 6% organically, to $4.3 billion.
Trane’s shares have declined 20.2% over the past year compared with 66.1% decline of the industry it belongs to.
Revenues and Bookings
The Americas segment’s revenues of $2.6 billion increased 13% year over year on a reported as well as an organic basis. Bookings increased 6% on a reported basis as well as organically, to $3.4 billion.
Europe, Middle East and Africa (EMEA) segment’s revenues came in at $441 million, down 1% year over year on a reported basis but up 6% organically. Bookings were down 6% year over year on a reported basis and stayed flat organically at $536.3 million.
Revenues from the Asia Pacific segment were up 13% year over year on a reported basis and 14% on an organic basis, to $281 million. Bookings of $350.4 million increased 13% on a reported basis and 14% organically.
Margin Performance
Adjusted EBITDA came in at $462 million, up 6% year over year. Adjusted EBITDA margin declined 70 basis points (bps) to 13.8%. Adjusted operating income of $385 million increased 5% year over year while adjusted operating margin declined 70 bps to 11.5%.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with cash balance of $1.3 billion compared with $2.7 billion at the end of the previous quarter. Debt balance was $4.8 billion, flat with the previous quarter’s tally.
The company used $184.3 million of cash in operating activities while capital expenditures were $74.8 million. Free cash flow was $27.3 million.
2022 Guidance
Trane expects revenues to increase 9% on a reported basis and 10% on an organic basis. Adjusted EPS is expected to be between $6.95 to $7.15, the midpoint ($7.05) of which is above the current Zacks Consensus Estimate of $7.04.
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Business Services Companies
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup’s quarterly results beat earnings and revenue estimates. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.
MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.
Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.
OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax's adjusted earnings of $2.22 per share beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.
EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.