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Carrier (CARR) to Report Q2 Earnings: What's in the Cards?

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Carrier Global Corporation (CARR - Free Report) is scheduled to report second-quarter 2022 results on Jul 28.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 62 cents per share, suggesting a decrease of 3.1% from the figure reported in the year-ago period. The estimated figure has been unchanged over the past 30 days.

The consensus mark for revenues is pegged at $5.16 billion, implying a 5.1% decline from the figure reported in the year-ago quarter.

Carrier beat on earnings in all the trailing four quarters, the average being 13.1%.

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation Price and EPS Surprise

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

Key Factors to Note

Carrier’s growing momentum across the core, aftermarket and digital offerings is expected to have benefited its second-quarter performance.

CARR is consistently gaining order momentum in the Americas and EMEA regions. This is likely to have remained positive in the underlined quarter.

Strength in the HVAC segment and increasing demand for CARR’s healthy, safe, sustainable & intelligent building offerings, and cold chain solutions might have continued supporting its performance in the to-be-reported quarter.

Increasing adoption of interconnected smoke detectors and the well-performing Abound platform is likely to have supported CARR’s performance in the quarter under discussion. 

Carrier is witnessing key wins in entailed system level solutions, including hardware, controls and aftermarket. This is expected to have contributed well to top-line growth in the second quarter.

However, uncertainties related to the coronavirus pandemic might get reflected in the upcoming quarterly results. The pandemic-induced lockdown in China is expected to have remained a headwind.

Also, softness in the Refrigeration and Fire & Security segments is likely to have negatively impacted the performance in the quarter under review.

Supply-chain constraints and mounting expenses related to research and development are expected to have hurt CARR’s profitability in the second quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Carrier this time around. 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, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Carrier has an Earnings ESP of -4.84% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Aspen Technology (AZPN - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +2.14% and a Zacks Rank of 3 at present.

Advanced Micro Devices is scheduled to release second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, suggesting an increase of 63.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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