Shares of Carrier Global are on the rise following the release of their impressive sales guidance for the heating, ventilation, and air-conditioning firm.
Revenue Outperforms Market Expectations
On Tuesday, Carrier announced their fourth-quarter earnings report, revealing earnings per share of 53 cents on sales totaling $5.1 billion. Surpassing Wall Street estimates, analysts had projected 51 cents per share on sales of $5.2 billion, according to FactSet. This represents significant growth compared to the previous year’s earnings of 40 cents per share on sales of $5.1 billion.
Positive Outlook Amidst Transformative Period
While the sales guidance is certainly encouraging, it is important for investors to consider the broader context of Carrier’s activities. CEO David Gitlin highlighted the company’s ability to perform well during a period of transformation. In addition to surpassing projections for the year, Carrier completed a game-changing merger with Viessmann Climate Solutions in January, and also secured definitive agreements to sell their Global Access Solutions and Commercial Refrigeration businesses, amounting to approximately $6 billion combined.
Exceeding Annual Earnings Forecast
At the beginning of 2023, Carrier’s management had projected earnings per share of about $2.55 for the year. However, the company ultimately achieved earnings of $2.73 per share, demonstrating their continued success.
Carrier Global continues to pave the way in the HVAC industry with their strong financial performance and strategic transformations.
Carrier Expects Strong Earnings in 2024
Looking ahead to 2024, Carrier predicts significant growth in earnings per share and sales. The company anticipates generating $2.80 to $2.90 per share on sales of $26.5 billion. This forecast stands in contrast to Wall Street’s projections of $2.86 per share on sales of $23 billion.
Carrier’s divergent sales projection reflects the company’s ongoing transformation. Recently, it finalized the acquisition of Viessmann, a top European heat-pump manufacturer. Additionally, Honeywell is acquiring Carrier’s Global Access Solutions and Commercial Refrigeration divisions. These recent developments are factored into Carrier’s guidance for the first half of the year.
The market has responded positively to Carrier’s updates. In premarket trading, the company’s stock rose by approximately 1%. Meanwhile, S&P 500 and Nasdaq Composite futures remained relatively stable, with the latter experiencing a modest increase of around 0.2%.
Over the past 12 months, Carrier shares have seen a commendable rise of about 22%. Comparatively, the S&P 500 and Nasdaq Composite posted gains of approximately 20% and 31%, respectively.
Considering the recent developments and projected growth in 2024, analysts and investors await further insights from Carrier’s management during the 7:30 a.m. Eastern time conference call. Key areas of interest include detailed information regarding recent transactions and an assessment of demand moving forward.