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Trane Technologies Q3 Earnings Beat Estimates, Rise Y/Y

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Trane Technologies plc (TT - Free Report) reported better-than-expected second-quarter 2024 results.

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Adjusted EPS of $3.37 surpassed the Zacks Consensus Estimate by 4.3% and increased 20.8% year over year.

Revenues of $5.4 billion beat the consensus mark by 2.4% and increased 11% year over year on a reported basis and organically. Bookings were up 5% year over year on a reported basis and organically.

 

Trane Technologies plc Price, Consensus and EPS Surprise

Trane Technologies plc Price, Consensus and EPS Surprise

Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote

Revenues and Bookings

The Americas segment’s revenues of $4.5 billion were higher than our estimate of $4 billion and increased 15% year over year on a reported basis and organically. Bookings were up 8% on a reported basis and organically, at $4.3 billion.

Europe, Middle East, and Africa segment’s revenues came in at $667.8 million, up 8% year over year on a reported basis and organically, missing our estimate of $661.2 million. Bookings were up 9% year over year on a reported basis and organically, at $637 million.

Revenues from the Asia Pacific segment were down 21% year over year on a reported basis and organically to $298.5 million, missing our estimate of $437.5 million. Bookings of $279 million decreased 30% on a reported basis and 31% organically.

Operating Margin Performance

Adjusted operating income was $56.9 billion, down 31% year over year. Adjusted operating margin squeezed 290 basis points to 19.1%.

Key Balance Sheet and Cash Flow Figures

Trane ended the quarter with a cash balance of $2.3 billion compared with $959 million in the previous quarter. The debt balance was $5.3 billion, flat with the previous quarter. The company generated $1.3 billion of cash from operating activities and free cash of $1.2 billion in the quarter.

2024 Guidance

The company raised its 2024 guidance. It currently expects revenues to increase 11% compared with the previous expectation of 10% growth.

Adjusted EPS is expected to be around $11.1 compared with the previous anticipation of $10.8. The revised guidance is higher than the Zacks Consensus Estimate of $10.89.

Trane currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.


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