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Carrier (CARR) Q4 Earnings & Sales Beat Estimates, Rise Y/Y

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Carrier Global CARR has reported fourth-quarter 2021 adjusted earnings of 44 cents per share, which beat the Zacks Consensus Estimate by 15.8%. Further, the figure increased 41.9% year over year.

Net sales of $5.13 billion improved 12% year over year, owing to the strong performance of the HVAC, transport refrigeration, and Fire and Security segments. Further, the top line surpassed the Zacks Consensus Estimate of $4.78 billion.

Product sales (82.9% of net sales) increased 14% year over year to $4.3 billion. Service sales (17.1% of net sales) grew 1.7% year over year to $877 million.

Quarterly Details

HVAC revenues (53.2% of net sales) increased 16.9% year over year to $2.7 billion.

Refrigeration revenues (21.2% of net sales) rose 14.9% from the year-ago quarter to $1.1 billion.

Fire & Safety revenues (27.9% of net sales) grew 2.4% from the year-ago quarter to $1.4 billion.

Selling, general & administrative (SG&A), and research & development (R&D) expenses grew 0.7% and 5.5% year over year to $816 million and $134 million, respectively.

As a percentage of revenues, SG&A and R&D expenses contracted 170 basis points (bps) and 20 bps year over year, respectively.

The adjusted operating margin increased 14.1% year over year to $517 million. The operating margin expanded 20 basis points on a year-over-year basis to 10.1%.

Carrier Global Corporation Price, Consensus and EPS Surprise

Carrier Global Corporation Price, Consensus and EPS Surprise
Carrier Global Corporation Price, Consensus and EPS Surprise

Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote

Balance Sheet

As of Dec 31, 2021, Carrier had cash and cash equivalents of $2.9 billion compared with $2.7 billion as of Sep 30, 2021.

Total debt (including current portion), as of Dec 31, 2021, was $9.69 billion compared with $9.68 billion as of Sep 30, 2021.

The company generated $913 million in cash from operations compared with $579 million recorded in the previous quarter.

Capital expenditure stood at $138 million and free cash flow was $775 million for the fourth quarter.

Guidance

For 2022, Carrier projects sales growth of $20 billion. The Zacks Consensus Estimate for the same is pegged at $19.85 billion.

The company expects adjusted earnings of $2.20-$2.30 per share. The Zacks Consensus Estimate for the same is pegged at $2.30 per share.

Carrier also expects a free cash flow of $1.65 billion for 2022.

Zacks Rank & Stocks to Consider

Currently, Carrier has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader technology sector are Bruker BRKR, Intuit INTU and Zscaler ZS, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bruker is scheduled to release fourth-quarter 2021 results on Feb 11. The company has gained 16.7% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.

Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. The company has gained 39.2% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.

Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. The company has gained 19.5% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.


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