Carrier Global Corp (CARR) Raises Full-Year Guidance Following Q3 2023 Earnings
Carrier Global Corp (NYSE:CARR) reports a 5% increase in net sales compared to Q3 2022, with organic sales up 3%
GAAP EPS stands at $0.42, with adjusted EPS at $0.89
Net cash inflows from operating activities reach $1.04 billion, with free cash flow generation at $949 million
Full-year adjusted EPS guidance for 2023 increased from $2.55 - $2.65 to approximately $2.70
Carrier Global Corp (NYSE:CARR), a global leader in intelligent climate and energy solutions, released its Q3 2023 earnings report on October 26, 2023. The company reported strong financial results, prompting an upward revision of its full-year adjusted operating margin and adjusted EPS guidance.
Financial Highlights
Carrier's Q3 sales of $5.7 billion were up 5% compared to the prior year, with organic sales growing 3% over the same period. The HVAC segment saw 4% growth, with commercial HVAC up high-single-digits and North America residential and light commercial HVAC up 5% organically. Fire and Security sales were up 6% organically, while Refrigeration sales were down 3% organically.
GAAP operating profit for the quarter was $645 million, down 58% from last year, mainly due to the absence of last years $732 million gain related to the acquisition of Toshiba Carrier Corporation. Adjusted operating profit of $1.0 billion was up 21% compared to last year. Net income was $357 million and adjusted net income was $765 million. GAAP EPS was $0.42 and adjusted EPS was $0.89.
Full-Year 2023 Guidance
Carrier updated its guidance for 2023, with sales expected to be over $22B, an organic increase in the mid-single digits. The adjusted operating margin is expected to be around 14.5%, and the adjusted EPS is expected to be around $2.70. Free cash flow is expected to be over $1.9B.
CEO Commentary
Carrier Chairman & CEO David Gitlin commented on the company's performance, stating:
Carrier continues to perform while transforming, delivering another strong quarter highlighted by an over 400 basis points increase in gross margins and solid cash flow growth. We are again raising our full year guidance for adjusted operating margin and adjusted EPS."
Looking Ahead
Carrier remains on track to complete the transformational combination with Viessmann Climate Solutions in early January 2024. The company is also pleased with the interest level in its strategic business exits, indicating a positive outlook for future growth and development.
Explore the complete 8-K earnings release (here) from Carrier Global Corp for further details.
This article first appeared on GuruFocus.
