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Why Is Carlisle (CSL) Up 5.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Carlisle (CSL - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carlisle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Carlisle reported fourth-quarter 2023 adjusted earnings (excluding 26 cents from non-recurring items) of $4.17 per share, which surpassed the Zacks Consensus Estimate of $3.47. The bottom line increased 6.4% year over year.
Carlisle’s total revenues of $1.13 billion beat the consensus estimate of $1.08 billion. However, the top line decreased 2% year over year, with a 2.3% decline in organic revenues.
Segmental Discussion
Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.
Revenues from the Carlisle Construction Materials segment increased 1.9% year over year to $815.9 million. Our estimate for segmental revenues was $763.7 million. Organic revenues increased 1.7% due to weakness in end markets. Adjusted EBITDA of $254.9 million increased 11.8% year over year.
Revenues from Carlisle Weatherproofing Technologies declined 10.8% year over year to $311.6 million due to residential demand weakness and the exit of a non-core business. Our estimate for segmental revenues was $314.1 million. Organic revenues slipped 11.6%. Adjusted EBITDA of $69.3 million jumped 54.3% year over year. Our estimate for segmental adjusted EBITDA was $58.0 million.
Margin Profile
Carlisle’s cost of sales declined 10.9% year over year to $707.8 million. Selling and administrative expenses increased 10.9% to $157.6 million. Research and development expenses totaled $8.0 million in fourth-quarter 2023, up 66.7% year over year.
CSL recorded operating income of $253.6 million, up 21.1% year over year. Operating margin increased to 22.5% compared with 18.2% in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the fourth quarter, Carlisle had cash and cash equivalents of $576.7 million compared with $364.8 million at the end of fourth-quarter 2022. Long-term debt (including the current portion) was $2.3 billion compared with $2.6 billion at the end of fourth-quarter 2022.
In 2023, Carlisle generated net cash of $1.2 billion from operating activities compared with $1.0 billion in the year-ago period.
In the same period, CSL, carrying a Zacks Rank #3 (Hold), rewarded its shareholders with a dividend payment of $160.3 million, up 19.3% year over year. The company bought back shares worth $900 million, up more than 100% year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Carlisle has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Carlisle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Carlisle is part of the Zacks Diversified Operations industry. Over the past month, General Electric (GE - Free Report) , a stock from the same industry, has gained 15.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
GE reported revenues of $18.52 billion in the last reported quarter, representing a year-over-year change of -15%. EPS of $1.03 for the same period compares with $1.24 a year ago.
For the current quarter, GE is expected to post earnings of $0.63 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for GE. Also, the stock has a VGM Score of D.
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Why Is Carlisle (CSL) Up 5.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Carlisle (CSL - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carlisle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Carlisle Q4 Earnings Beat Estimates, Revenues Decline Y/Y
Carlisle reported fourth-quarter 2023 adjusted earnings (excluding 26 cents from non-recurring items) of $4.17 per share, which surpassed the Zacks Consensus Estimate of $3.47. The bottom line increased 6.4% year over year.
Carlisle’s total revenues of $1.13 billion beat the consensus estimate of $1.08 billion. However, the top line decreased 2% year over year, with a 2.3% decline in organic revenues.
Segmental Discussion
Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.
Revenues from the Carlisle Construction Materials segment increased 1.9% year over year to $815.9 million. Our estimate for segmental revenues was $763.7 million. Organic revenues increased 1.7% due to weakness in end markets. Adjusted EBITDA of $254.9 million increased 11.8% year over year.
Revenues from Carlisle Weatherproofing Technologies declined 10.8% year over year to $311.6 million due to residential demand weakness and the exit of a non-core business. Our estimate for segmental revenues was $314.1 million. Organic revenues slipped 11.6%. Adjusted EBITDA of $69.3 million jumped 54.3% year over year. Our estimate for segmental adjusted EBITDA was $58.0 million.
Margin Profile
Carlisle’s cost of sales declined 10.9% year over year to $707.8 million. Selling and administrative expenses increased 10.9% to $157.6 million. Research and development expenses totaled $8.0 million in fourth-quarter 2023, up 66.7% year over year.
CSL recorded operating income of $253.6 million, up 21.1% year over year. Operating margin increased to 22.5% compared with 18.2% in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the fourth quarter, Carlisle had cash and cash equivalents of $576.7 million compared with $364.8 million at the end of fourth-quarter 2022. Long-term debt (including the current portion) was $2.3 billion compared with $2.6 billion at the end of fourth-quarter 2022.
In 2023, Carlisle generated net cash of $1.2 billion from operating activities compared with $1.0 billion in the year-ago period.
In the same period, CSL, carrying a Zacks Rank #3 (Hold), rewarded its shareholders with a dividend payment of $160.3 million, up 19.3% year over year. The company bought back shares worth $900 million, up more than 100% year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Carlisle has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Carlisle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Carlisle is part of the Zacks Diversified Operations industry. Over the past month, General Electric (GE - Free Report) , a stock from the same industry, has gained 15.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
GE reported revenues of $18.52 billion in the last reported quarter, representing a year-over-year change of -15%. EPS of $1.03 for the same period compares with $1.24 a year ago.
For the current quarter, GE is expected to post earnings of $0.63 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for GE. Also, the stock has a VGM Score of D.