Carrier (CARR) Expands Portfolio With Montana Partnership
Carrier Global CARR has taken a significant step toward advancing sustainable and efficient cooling technologies.
Carrier recently announced that it has officially entered a definitive agreement with Montana Technologies aimed at developing and commercializing Montana's innovative AirJoule dehumidification and cooling technology.
The AirJoule technology — with its unique approach to dehumidification — has the potential to revolutionize air conditioning efficiency by harnessing water and thermal energy from the air.
Carrier further demonstrated its dedication by committing $10 million in growth equity to support Montana in the commercialization of AirJoule, a step that aligns with the global push for sustainable practices and reduced carbon emissions in the field of climate control.
Carrier Global Corporation Price and Consensus
Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote
Strong Portfolio Aids Prospect
In the past six months, Carrier’s shares have increased 10.1% compared with the Zacks Computer and Technology sector’s 7.7% growth. The uptick can be attributed to its strong product portfolio, which is helping it win market share in the sustainable climate and energy solution domain.
Carrier recently achieved a significant milestone by successfully acquiring Viessmann Climate Solutions, a move that strengthens Carrier's position as a global leader in sustainable climate and energy solutions, showcasing its commitment to portfolio transformation.
In December, CARR, through its subsidiary Carrier Transicold, enhanced customer support and environmental sustainability with the relocation of Arras Froid Services to a new 1,300 square-meter facility featuring solar panels, rainwater collection and upcoming electric vehicle charging stations.
Carrier introduced the i-Vu weather forecasting add-on, enhancing its building automation system with real-time outside air quality data for intelligent control strategies and improved energy efficiency, water usage and indoor air quality adjustments in response to varying climates.
Divestitures Helps Core Business Focus
Carrier is expected to benefit from portfolio strength and the divestiture of non-core assets.
Management recently announced the sale of its commercial refrigeration business to Haier for an enterprise value of $775 million.
Carrier also announced the sale of its security business, Global Access Solutions, to Honeywell International HON.
In December, Carrier finalized a deal to sell its security business, Global Access Solutions, including leading brands LenelS2, Supra, and Onity, to Honeywell for $4.95 billion, marking a pivotal step in Carrier's portfolio transformation.
Carrier aims to enhance its focus on advancing intelligent climate and energy solutions by divesting.
This move will allow Carrier to introduce innovative products aligned with sustainability goals and contribute to decarbonizing the planet for future generations.
CARR’s 2023 Guidance Strong
Carrier’s 2023 guidance remains strong due to its robust portfolio strength. It expects sales in the band of $22.1-$22.2 billion with mid-single-digit organic sales growth. The Zacks Consensus Estimate for 2023 revenues is pegged at $22.25 billion, indicating 8.94% growth from a year ago.
Management expects organic sales growth in the container business, commercial refrigeration and the entire Refrigeration segment.
It anticipates earnings to be nearly $2.70 per share. The Zacks Consensus Estimate is pegged at $2.72.
Zacks Rank & Stocks to Consider
Currently, CARR carries a Zacks Rank #3 (Hold).
DoorDash DASH and Camtek CAMT are some better-ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dash and CAMT have returned 26.9% and 102.4%, respectively, on past six-month period.
Long-term earnings growth rates for DoorDash and Camtek are pegged at 42.13% and 12.26%, respectively.
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