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Carrier Global Ahead of Q3 Earnings: Should You Invest in the Stock?

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Carrier Global (CARR - Free Report) is scheduled to report its third-quarter 2024 results on Oct. 24.

The company anticipates third-quarter earnings to be about 80 cents per share. The consensus mark for earnings has been steady at 81 cents per share over the past 30 days, suggesting an 8.99% decline from the figure reported in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In third-quarter 2024, CARR expects sales of about $6.6 billion. The Zacks Consensus Estimate for revenues is pegged at $6.61 billion, indicating 15.37% year-over-year growth.

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation Price and EPS Surprise

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

Carrier’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 11.09%.

Let’s see how things have shaped up for the upcoming announcement.

Factors Likely to Have Influenced CARR’s Q3 Performance

Carrier’s strong momentum in the Heating, Ventilating and Air Conditioning (HVAC) and aftermarket services is expected to have contributed to top-line growth in the third quarter.

The growing requirement for heating and cooling systems across residential and commercial applications is expected to have driven the HVAC segment.

The Zacks Consensus Estimate for third-quarter 2024 HVAC revenues is pegged at $5.16 billion, indicating 28.94% year-over-year growth. 

The aftermarket segment rose 9% in the second quarter of 2024, with a strong performance in commercial HVAC. CARR aims for another year of double-digit growth in the segment, supported by a high attachment rate for chillers and a strong aftermarket business.

The data center market is projected to grow significantly due to the increasing heat generation from AI chips. Carrier’s efforts to capitalize on this growth by securing key wins and optimizing its global footprint are likely to have continued driving sales in the segment.

Carrier’s differentiated sustainability solutions are likely to have driven continued growth. It introduced several new, energy-efficient products in the second quarter of 2024, including a low-GWP (Global Warming Potential) variant of its AquaEdge Water Cooled Chiller and rooftop units featuring EcoBlue fan technology. These offerings are expected to have driven demand in the to-be-reported quarter, particularly as customers look for solutions to reduce energy consumption and greenhouse gas emissions.

The integration of Viessmann Climate Solutions is also expected to have enhanced CARR’s capabilities and market reach in the to-be-reported quarter, particularly in heat pump technology and sustainable solutions.

However, weakness in Europe and China affected RLC businesses, and softness in commercial refrigeration is expected to have hurt the company’s performance in the to-be-reported quarter.

What Our Model Says for CARR

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.

Carrier has an Earnings ESP of +1.18% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

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

Reddit (RDDT - Free Report) has an Earnings ESP of +72.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Reddit shares have gained 55.8% year to date. RDDT is set to report its third-quarter 2024 results on Oct. 29.

Garmin (GRMN - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of #2 at present.

Garmin shares have gained 29.6% year to date. GRMN is set to report its third-quarter 2024 results on Oct. 30.

Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3.

Cognizant’s shares have gained 1.8% year to date. CTSH is set to report its third-quarter 2024 results on Oct. 30.


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