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Carrier (CARR) to Report Q2 Earnings: What's in the Cards?

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Carrier Global Corporation CARR is scheduled to report second-quarter 2021 results on Jul 29.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 56 cents per share, suggesting growth of 69.7% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $4.95 billion, implying 24.6% growth from the figure reported in the year-ago quarter.

Carrier beat on earnings in three of the trailing four quarters and missed the same on one occasion, with the average surprise being 17.98%.

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation Price and EPS Surprise
Carrier Global Corporation Price and EPS Surprise

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

Key Factors to Note

Strong demand for residential HVAC is likely to have continued aiding top-line growth in second-quarter 2021.

Growing momentum across aftermarket and digital offerings is expected to have benefited the company in the soon to-be-reported quarter.

Carrier has been gaining traction on BlueEdge offerings. During the second quarter, it introduced BluEdge Digital — a new tiered service offering — to complement the existing BluEdge service platform. This might have been a positive in the quarter under review.

Further, increasing light commercial order rates are likely to get reflected in the upcoming quarterly results.

Growing investments in cold chain solutions and solutions for healthy, safe, and sustainable building are expected to have benefited its quarterly performance.

The company’s positive outlook toward gaining chiller contracts and generating more revenues through the Abound platform is likely to have remained a tailwind.

Further, the acquisition of a majority stake in Guangdong Giwee Group and its subsidiary, Guangdong Chigo Heating & Ventilation Equipment — commonly known as Chigo — is expected to have contributed to top-line growth in the second quarter.

During the quarter, Carrier launched a wifi-enabled smart air purifier. Additionally, its field business Chubb unveiled Chubb visiON+. These introductions are anticipated to have aided the company’s performance in the to-be-reported quarter.

Yet, uncertainties related to the coronavirus pandemic might get reflected in the upcoming quarterly results. Also, supply-chain constraints — which have been resulting in a surge in logistics costs — are likely to have remained an overhang.

Further, sluggishness in the fire & safety solutions business is expected to have remained a headwind in the second quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Carrier this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of -0.64% and a Zacks Rank #2, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Agilent Technologies A has an Earnings ESP of +1.49% and a Zacks Rank of 2, at present.

Avnet AVT has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software CYBR has an Earnings ESP of +37.93% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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Avnet, Inc. (AVT) : Free Stock Analysis Report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report

Carrier Global Corporation (CARR) : Free Stock Analysis Report

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