Carrier Global
CARR
has reported second-quarter 2021 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate by 14.3%. Further, the figure increased 93.9% year over year.
Net sales of $5.44 billion beat the Zacks Consensus Estimateof $4.95 billion. Further, the top line improved 37% year over year,owing to solid momentum across HVAC, transport refrigeration, and Fire and Security.
Product sales (84.3% of net sales) increased 40% year over year to $4.58 billion. Service sales (15.7% of net sales) grew 22.8% year over year to $856 million.
Quarterly Details
HVAC revenues (57.3% of net sales) increased 36.2% year over year to $3.12 billion.
Refrigeration revenues (18.8% of net sales) rose 45.8% from the year-ago quarter to $1.02 billion.
Fire & Safety revenues (25.8% of net sales) grew32.7% from the year-ago quarter to $1.4 billion.
Carrier Global Corporation Price, Consensus and EPS Surprise
Carrier Global Corporation price-consensus-eps-surprise-chart
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Carrier Global Corporation Quote
The cost of goods sold was $3.24 billion, up 38.1% year over year. Moreover, the cost of services sold rose20.1% to $586 million.
Selling, general & administrative (SG&A), and research & development (R&D) expenses grew 27.6% and 32.9% year over year to $813 million and $125 million, respectively.
Adjusted operating marginincreased72.5% year over year to $821 million. The operating margin expanded 310 basis points on a year-over-year basis to 15.1%.
Balance Sheet
As of Jun 30, 2021, Carrier had cash and cash equivalents worth $2.63 billion compared with $2.60 billion as of Mar 31, 2021.
Total debt (including current portion), as of Jun 30, 2021, was $9.72 billion compared with $9.73 billion as of Mar 31, 2021.
The company generated $561 million in cash from operations compared with $184 million recorded in the previous quarter.
Capital expenditure stood at $79 million and free cash flow was $482 million for the second quarter.
Guidance
For 2021, Carrier expects sales growth between 14% and 16%, up from the previously mentioned7-10%.Organic sales growth is expected to be between 10% and 12%, up from 5-8% stated earlier. The Zacks Consensus Estimate is for 2021 revenues is pegged at 19.5 billion
Adjusted earnings are expected between $2.10 and $2.20 per share, up from the previously mentioned 1.95-$2.05 The consensus mark for the same stands at $2.07 per share.
Free cash flow guidance has also been revised from $1.7 billion to $1.9 billion.
Zacks Rank and Other Stocks to Consider
Currently, Carrier carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are
KLA Corporation
KLAC
,
Trimble Inc.
TRMB
and
Garmin Ltd.
GRMN
. The three companies currently carry a Zacks Rank #2. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rates of KLA, Trimble and Garmin are pegged at 14.03%, 10.1% and 6.8%, respectively.
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