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Carrier Global shares jump 5% on earnings beat

EditorRachael Rajan
Published 04/25/2024, 08:34 PM
© Reuters.

PALM BEACH GARDENS, Fla. - Carrier Global Corporation (NYSE:CARR), a global provider of climate and energy solutions, reported its financial results for the first quarter of 2024, surpassing analyst expectations for earnings per share (EPS) but falling short on revenue.

The company announced an adjusted EPS of $0.62, which was $0.12 higher than the analyst consensus of $0.50. However, quarterly revenue stood at $6.18 billion, missing the consensus estimate of $6.35 billion. The stock was up 5.8% following the announcement.

Carrier's first-quarter sales increased by 17% compared to the first quarter of 2023, with organic sales growing by 2%. Despite this, the stock experienced a slight decline of 1.5%, indicating investor concern primarily due to the revenue shortfall. The company's GAAP operating margin decreased by 240 basis points YoY, while the adjusted operating margin expanded by 280 basis points.

CEO David Gitlin expressed confidence in the company's performance and strategic initiatives, stating, "We continue to perform while transforming. We expanded adjusted operating margins by 280 basis points driven by very strong productivity while continuing to invest in our future." The acquisition of Viessmann Climate Solutions at the beginning of the year is expected to be transformational for Carrier and the industry.

Looking ahead, Carrier is maintaining its full-year 2024 adjusted EPS guidance range of $2.80 to $2.90, despite an additional $0.05 headwind from the earlier timing of business exits. This guidance is in line with the analyst consensus of $2.83. The company also updated its full-year 2024 revenue guidance to approximately $26 billion, slightly below the analyst consensus of $26.36 billion. Additionally, Carrier expects to resume share repurchases in 2024, supported by the net proceeds from announced transactions, which will help the company return to approximately 2x net leverage this year.

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