Trane Technologies (TT) Q3 Earnings Beat Estimates, Rise Y/Y
Trane Technologies plc TT reported better-than-expected third-quarter 2023 results.
Its adjusted EPS (excluding 7 cents from non-recurring items) of $2.79 surpassed the Zacks Consensus Estimate by 4.9% and increased 22.9% year over year.
Revenues of $4.8 billion beat the consensus mark by 2.1% and improved 12% year over year on a reported basis and 9% organically. Bookings were up 10% year over year on a reported basis and 8% organically.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Revenues and Bookings
The Americas segment generated revenues of $3.8 billion, which surpassed our estimate of $3.74 billion. Segmental top line jumped 12% year over year on a reported basis and 11% organically. Bookings were up 8% on a reported basis and 7% organically.
Europe, Middle East and Africa segment’s revenues reached $618.6 million, up 21% year over year on a reported basis and 3% organically. We projected the metric to be $569.2 million. Bookings were up 29% year over year on a reported basis and 12% organically.
Revenues from the Asia Pacific segment were $376.3 million, remaining flat year over year on a reported basis. It inched down 1% on an organic basis and missed our prediction of $428.2 million. Bookings of $400.2 million increased 12% on a reported basis as well as organically.
Margin Performance
Adjusted EBITDA amounted to $954 million, up 18% year over year. Adjusted EBITDA margin improved 100 basis points (bps) to 19.5%. Adjusted operating income of $879 million increased 21% year over year. Adjusted operating margin extended 130 bps to 18%.
Key Balance Sheet and Cash Flow Figures
Trane Technologies ended the quarter with a cash balance of $960 million compared with $664 billion in the previous quarter. The debt balance was $4.47 billion compared with the previous quarter’s $5 billion. It generated $922 million of cash from operating activities and a free cash outflow of $861 million in the reported quarter.
Raised 2023 Guidance
The company expects revenues to rise 10-11% on a reported basis compared with the previously mentioned 10% increase. It projects revenue growth of 8-9% on an organic basis compared with the prior stated 8%.
Adjusted EPS is suggested to be $9.00 compared with the earlier stated $8.8-$8.9. The Zacks Consensus Estimate is pegged at $8.87.
TT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. IPG posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
Trane Technologies plc (TT) : Free Stock Analysis Report
