Carrier (CARR) Bolsters HVAC Segment With SPHC Acquisition
Carrier Global’s CARR subsidiary Automated Logic Contracting Services recently announced the completion of the acquisition of Standard Plumbing Heating Controls (SPHC).
Notably, SPHC is well-known for heating, ventilation and air conditioning (HVAC) and building automation offerings.
The buyout has added strength to the HVAC segment of Carrier. Further, it has expanded the company’s building control offerings.
Moreover, Carrier strives to deliver value-added services to customers with the support of SPHC.
Thus, the acquisition is likely to drive customer momentum in Carrier’s HVAC segment.
Carrier Global Corporation Price and Consensus
Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote
Strengthening HVAC Segment
Carrier recently launched the i-Vu Pro v8.5 software, the latest version of the i-Vu building automation system.
Further, the company expanded the capacity of its AquaEdge 19DV water-cooled centrifugal chiller in Europe, now offering up to 3850 kW capacity.
Additionally, Automated Logic unveiled WebCTRL v8.5 software, which enables IoT connectivity, supports message queuing telemetry transport and Sparkplug, and offers commissioning tools for efficient service delivery.
Also, Nlyte Software, part of Carrier Global, released Nlyte R14, which incorporates new architecture features and security updates to increase data center management efficiency and security.
The abovementioned efforts are expected to continue driving growth in the HVAC segment, which, in turn, will aid the company’s overall performance. This will instill investor optimism in the stock.
For 2023, Carrier expects revenues of $22 billion. The Zacks Consensus Estimate for 2023 revenues is pegged at $22.16 billion, indicating an 8.5% increase from the 2022 level.
Notably, CARR has gained 21.3% in the year-to-date period, outperforming the industry’s rally of 16%.
Acquisitions a Key Catalyst
Carrier’s increasing strategic acquisitions have been playing a vital role in shaping its growth trajectory.
Apart from the SPHC buyout, Automated Logic recently acquired Logical Electrical & Service Solutions, which strengthened its presence in the building automation and controls market of Australia.
Moreover, Carrier’s acquisition of Toshiba’s global residential and light commercial HVAC business is noteworthy.
The company also announced the acquisition of Viessmann Climate Solutions for EUR 12 billion in cash and stock.
Zacks Rank & Stocks to Consider
Currently, Carrier Global carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Palo Alto Networks PANW, Akamai Technologies AKAM and AMETEK AME. Palo Alto Networks and Akamai Technologies sport a Zacks Rank #1 (Strong Buy) each, while AMETEK carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Palo Alto Networks shares have increased 82.5% in the year-to-date period. The long-term earnings growth rate for PANW is currently projected at 31.5%.
Akamai Technologies shares have increased 8.3% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected 10%.
AMETEK shares have increased 15.1% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 8.95%.
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