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Carlisle (CSL) Q4 Earnings & Revenues Surpass Estimates

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·4 min read
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Carlisle Companies Incorporated CSL reported impressive fourth-quarter 2021 results wherein both the bottom line and the top line surpassed the Zacks Consensus Estimate.

Carlisle’s shares jumped 2% on Friday, ending the trading session at $229.08.

The company’s adjusted earnings were $2.92 per share, beating the consensus estimate of $2.62 by 11.5%. The bottom line increased 59.6% on a year-over-year basis supported by higher sales, partially offset by a rise in corporate expense.

In 2021, the company’s earnings came in at $9.44, an increase of 21.3% on a year-over-year basis.

Inside the Headlines

In the reported quarter, Carlisle’s revenues came in at $1,376 million, up 39.2% year over year. This increase was attributable to a 26.4% rise in organic revenues, 12.9% benefit from acquired assets, partially offset by an adverse impact of 0.1% from changes in foreign exchange rates.

The top line surpassed the Zacks Consensus Estimate of $1,286 million by 7%.

The company reports results under three segments — Carlisle Construction Materials (“CCM”), Carlisle Interconnect Technologies (“CIT”) and Carlisle Fluid Technologies (“CFT”). The quarterly segmental results are briefly discussed below.

Revenues from CCM totaled $1,114.3 million, increasing 46.5% year over year. It represented 81% of the company’s revenues. Organic revenues grew 29.8% on the back of strong demand for U.S. commercial roofing, the Henry acquisition and strength across all product lines.

CIT revenues, representing 13.4% of total revenues, were $184.4 million, up 19.3% year over year. The increase was driven by 19.1% growth in organic revenues on account of improving aerospace and medical end markets.

CFT revenues, representing 5.6% of total revenues, were $77.3 million, up 6% year over year. Organic revenues increased 7.3% on account of strength in its businesses and solid price realization.

In 2021, the company’s revenues came in at $4,810.3 million, up 21.2% year over year.

Carlisle Companies Incorporated Price, Consensus and EPS Surprise

Carlisle Companies Incorporated Price, Consensus and EPS Surprise
Carlisle Companies Incorporated Price, Consensus and EPS Surprise

Carlisle Companies Incorporated price-consensus-eps-surprise-chart | Carlisle Companies Incorporated Quote

Operating Margin Details

In the reported quarter, Carlisle’s cost of sales increased 39.1% to $985.5 million. It represented 71.6% of net sales compared with 71.7% a year ago.

Selling and administrative expenses increased 25.1% to $193.5 million. It represented 14.1% of net sales compared with 15.7% in the year-ago quarter. Research and development expenses totaled $12.9 million, up 25.2%.

Operating income was $182.5 million, up 64% year over year, while margin increased 200 basis points to 13.3%.

Balance Sheet and Cash Flow

Exiting 2021, Carlisle had cash and cash equivalents of $324.4 million compared with $295.6 million at the end of the previous quarter. Long-term debt (including current portion) was $2,927.4 million, up from $2,926.4 million sequentially.

In 2021, the company generated net cash of $421.7 million from operating activities compared with $696.7 million a year ago.

In 2021, the company rewarded shareholders with a dividend payout of $112.5 million, relatively stable year over year. Amount spent on buying back shares totaled $315.6 million, down 17.5%.

Outlook

In 2022, Carlisle expects revenue growth of about 30% year over year in the CCM segment, driven by strength across the U.S. commercial roofing market and the Henry acquisition. Revenues from CIT and CFT segments are expected to increase about 10% each, on the back of strength in markets.

Zacks Rank & Other Stocks to Consider

The company currently carries a Zacks Rank #2 (Buy).

Some other top-ranked companies are discussed below.

Griffon Corporation GFF presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. It delivered a four-quarter earnings surprise of 16.20%, on average.

Griffon’s earnings estimates increased 9.9% for 2022 and 14.3% for 2023 in the past 30 days. Its shares have lost 21.5% in the past three months.

Franklin Electric Co., Inc. FELE presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 16.27%, on average.

In the past 30 days, Franklin Electric’s earnings estimates have been stable for both 2021 (results are awaited) and 2022. FELE’s shares have lost 10.8% in the past three months.

SPX FLOW, Inc. FLOW presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 40.42%, on average.

SPX FLOW’s earnings estimates have been stable for 2021 (results are awaited) and increased 0.3% for 2022 in the past 30 days. FLOW’s shares have gained 7.4% in the past three months.


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Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report

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Franklin Electric Co., Inc. (FELE) : Free Stock Analysis Report

Griffon Corporation (GFF) : Free Stock Analysis Report

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