Back to top

Image: Bigstock

Carlisle (CSL) Q3 Earnings & Revenues Miss Estimates, Up Y/Y

Read MoreHide Full Article

Carlisle Companies Incorporated’s (CSL - Free Report) third-quarter 2018 earnings and revenues improved on a year-over-year basis. However, the company stated that retirement costs at Carlisle Construction Materials, unfavorable September weather and price sensitivity at Accella weighed over the quarterly top- and bottom-line results.

Earnings/Revenues

Quarterly earnings came in at $1.64 per share, up 19.7% year over year. However, the bottom line missed the Zacks Consensus Estimate of $1.68. The company stated that higher sales volumes, price-realization moves, execution of the Carlisle Operating System (COS), lower corporate tax rates and reduced share count aided in boosting its quarterly bottom-line performance. However, retirement costs, higher freight charges and elevated labor-related expenses remain major drags,

Revenues in the third quarter came in at $1,181.4 million, up 17.9% year over year. The headline numbers improved 5.5% year over year on an organic basis. The company stated that adoption of ASC 606 and newly-made acquisitions chiefly drove the quarterly revenues. However, the top line missed the Zacks Consensus Estimate of $1,198 million.

Segmental Break-Up

Revenues from the Carlisle Construction Materials segment totaled $776.8 million, which increased 21.3% year over year. The Carlisle Interconnect Technologies segment generated revenues of $240.2 million, up 13.9% year over year. Top-line numbers of the company’s Carlisle Fluid Technologies segment came in at $72.4 million in the third quarter, up 2.1% year over year. Revenues in the Carlisle Brake & Friction segment were up 14.3% year over year to $92 million.

Costs/Margins

In the Sep-end quarter, Carlisle's cost of goods sold escalated 20.8% year over year to $867.1 million.

Selling and administrative expenses, as a percentage of revenues, were 13.9% compared with 13.8% in the year-ago quarter. Operating margin of the company shrunk 150 basis points year over year to 11.9%.

Balance Sheet

As of Sep 30, 2018, Carlisle's cash and cash equivalents were $780.5 million compared with $378.3 million recorded as of Dec 31, 2017. Long-term debt remained almost flat at $1,587.4 million compared with its value at the end of 2017.

Outlook

Carlisle believes its latest business moves are primarily aimed at supporting the company’s Vision 2025. This Zacks Rank #3 (Hold) company expects that stellar end-market demand and pricing actions will continue to drive its revenues in the quarters ahead as well. Execution of COS, improved top-line performance and acquisition benefits will likely boost its near-term profitability.

Key Picks

Some better-ranked stocks are listed below:

Macquarie Infrastructure Company sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 8.05% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Altra Industrial Motion Corp. also flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 4.01% in the trailing four quarters.

Atkore International Group Inc. (ATKR - Free Report) is another Zacks #1 Ranked company. The stock delivered an average positive earnings surprise of 24.46% in the preceding four quarters.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Carlisle Companies Incorporated (CSL) - $25 value - yours FREE >>

Atkore Inc. (ATKR) - $25 value - yours FREE >>

Published in