Carrier (CARR) to Report Q1 Earnings: What's in the Cards?

Carrier Global CARR is scheduled to report its first-quarter 2024 results on Apr 25.

The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $6.27 billion, indicating 18.88% year-over-year growth.

The consensus mark for earnings is currently pegged at 50 cents per share, unchanged in the past 30 days.

Carrier’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.02%.

Carrier Global Corporation Price and EPS Surprise

 

Carrier Global Corporation Price and EPS Surprise

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

 

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

Factors to Note

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

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

The Zacks Consensus Estimate for first-quarter HVAC revenues is pegged at $4.38 billion, indicating 21.14% year-over-year growth.

Its growing emphasis on differentiated, sustainable products with improved energy efficiency, by incorporating AI and sensing algorithms and low GWP (Global Warming Potential) refrigerants, is expected to have driven the demand for Carrier’s sustainable HVAC and refrigeration solutions during the quarter under review.

Carrier's focus on achieving consistent double-digit aftermarket growth is expected to have boosted revenues in the to-be-reported quarter. With an increasing number of connected chillers in the field and improved attachment rates for long-term service agreements, Carrier is likely to have capitalized on aftermarket opportunities, contributing to revenue growth and enhancing customer relationships.

The acquisition of Viessmann Climate Solutions is expected to have been a significant growth driver in intelligent climate and energy solutions. Per management’s guidance, Carrier expects Viessmann Climate Solution sales to be up mid-single digits off a 2023-year end of nearly $4.2 billion, with high teens adjusted EBITDA margins.

Carrier's divestitures of Access Solutions and Commercial Refrigeration businesses are expected to have contributed to streamlining its business and focusing on core areas of strength. The net proceeds from these divestitures are expected to have yielded close to $4.5 billion in the first quarter.

However, widespread supply-chain disruptions and macroeconomic uncertainty are expected to have been headwinds for the company.

What Our Model Says

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 +0.44% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

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

Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have returned 4.2% year to date. ANET is set to report its first-quarter 2024 results on May 7.

DoorDash DASH has an Earnings ESP of +260.98% and a Zacks Rank of #2 at present.

DoorDash’s shares have gained 28.7% year to date. DASH is set to report its first-quarter 2024 results on May 1.

Amazon.com AMZN has an Earnings ESP of +11.66% and a Zacks Rank #2.

Amazon.com’s shares have gained 16.6% year to date. AMZN is set to report its first-quarter 2024 results on Apr 30.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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