Carlisle (CSL) Q3 Earnings Beat Estimates, Revenues Miss Mark
Carlisle Companies CSL reported third-quarter 2023 adjusted earnings (excluding 61 cents from non-recurring items) of $4.68 per share, which surpassed the Zacks Consensus Estimate of $4.57. The bottom line declined year over year.
Carlisle’s total revenues of $1,259.8 million missed the Zacks Consensus Estimate of $1,273 million. The top line decreased year over year, with a 16.1% decline in organic revenues.
Segmental Discussion
Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.
Revenues from Carlisle Construction Materials decreased 16.2% year over year to $914 million. Organic revenues declined 16.5% due to weakness in end markets. Adjusted EBITDA of $289.4 million decreased 18.3% year over year. Our estimate for the quarter was $302.9 million.
Carlisle Companies Incorporated Price, Consensus and EPS Surprise
Carlisle Companies Incorporated price-consensus-eps-surprise-chart | Carlisle Companies Incorporated Quote
Revenues from Carlisle Weatherproofing Technologies declined 15% year over year to $345.8 million due to residential demand weakness and project delays. Our estimate for segmental revenues was $383 million. Organic revenues slipped around 15%. Adjusted EBITDA of $80.8 million jumped 36.7% year over year. Our estimate for segmental adjusted EBITDA was $100.1 million.
Margin Profile
Carlisle’s cost of sales declined 19.2% year over year to $793.7 million. Selling and administrative expenses decreased 0.3% to $161.7 million. Research and development expenses totaled $7.2 million in third-quarter 2023, up 44% year over year.
CSL recorded operating income of $299.9 million, down 7.4% year over year. Operating margin increased to 23.8% compared with 21.6% in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the third quarter, Carlisle had cash and cash equivalents of $108 million, compared with $364.8 million at the end of fourth-quarter 2022. Long-term debt (including the current portion) was $2,285.5 million compared with $2,582.9 million at the end of fourth-quarter 2022.
In the first nine months of 2023, Carlisle generated net cash of $812.4 million from operating activities compared with $588.6 million in the year-ago period.
In the same period, CSL, carrying a Zacks Rank #5 (Strong Sell), rewarded its shareholders with dividend payment of $119.3 million, up 24.8% year over year. The company bought back shares worth $580 million, up more than 100% year over year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Performance of Other Industrial Companies
Cimpress plc CMPR reported first-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 34 cents per share. The company incurred a loss of 97 cents per share in the year-ago quarter.
Cimpress’ total revenues of $757.3 million missed the Zack Consensus Estimate of $771 million. The top line increased 7.7% year over year, driven by growth across most of its businesses.
Stanley Black & Decker SWK reported third-quarter 2023 adjusted earnings (excluding $1.02 from non-recurring items) of $1.05 per share, which beat the Zacks Consensus Estimate of 84 cents. The bottom line jumped 38.2% year over year due to lower costs.
Stanley Black’s net sales of $3,953.9 million missed the Zacks Consensus Estimate of $4,019.3 million. The top line also declined 4% year over year due to weakness in the Tools & Outdoor segment.
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