Results: Carrier Global Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates
Carrier Global Corporation (NYSE:CARR) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.4% to hit US$4.7b. Carrier Global reported statutory earnings per share (EPS) US$0.43, which was a notable 15% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Carrier Global
Following the latest results, Carrier Global's 14 analysts are now forecasting revenues of US$18.9b in 2021. This would be a credible 3.5% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to plummet 25% to US$1.97 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$18.9b and earnings per share (EPS) of US$1.92 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$48.63, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Carrier Global, with the most bullish analyst valuing it at US$57.00 and the most bearish at US$36.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Carrier Global's growth to accelerate, with the forecast 4.6% annualised growth to the end of 2021 ranking favourably alongside historical growth of 0.5% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. So it's clear that despite the acceleration in growth, Carrier Global is expected to grow meaningfully slower than the industry average.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Carrier Global's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Carrier Global's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$48.63, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Carrier Global going out to 2025, and you can see them free on our platform here..
Even so, be aware that Carrier Global is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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