What's in the Offing for Carlisle (CSL) in Q2 Earnings?
Carlisle Companies Incorporated CSL is scheduled to report second-quarter 2023 results on Jul 26 after the market close.
The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised 4.2% downward in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing in one, the average beat being 7%.
Let’s see how things are shaping up for Carlisle this earnings season.
Factors to Note
Improving supply chains are likely to have driven CSL’s second-quarter performance. Focus on product introductions, positive pricing and the growing backlog level is likely to have benefited the Carlisle Fluid Technologies segment in the to-be-reported quarter.
Growing demand in the medical market and commercial aerospace business is expected to have boosted the performance of the Carlisle Interconnect Technologies segment. We expect the segment’s revenues to increase 6.6% from the second-quarter 2022 reported number.
However, persistent softness due to lower volumes as distributors and contractors continue to normalize inventory levels prolonged by weather conditions are likely to have weighed on the Carlisle Construction Materials (CCM) segment. For the second quarter, we expect the CCM segment’s revenues to decrease 7.4% from the year ago quarter’s reported number.
Decreasing residential end market demand is likely to have dented the Carlisle Weatherproofing Technologies segment’s revenues. We expect the segment’s revenues to decrease 17.9% in the quarter from the year-ago period’s reported number.
Carlisle Companies Incorporated Price and EPS Surprise
Carlisle Companies Incorporated price-eps-surprise | Carlisle Companies Incorporated Quote
Given CSL’s substantial international presence, foreign-currency headwinds are expected to have dented its top line. We expect the company’s revenues to decrease 9.6% from the year-ago quarter’s reported figure.
Earnings Whispers
Our proven model suggests an earnings beat for CSL 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, which is the case here, as elaborated below.
Earnings ESP: Carlisle has an Earnings ESP of +2.43% as the Most Accurate Estimate is pegged at $4.85, higher than the Zacks Consensus Estimate of $4.74. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Carlisle carries a Zacks Rank of 3.
Highlights of Q1 Earnings
In first-quarter 2023, Carlisle’s adjusted earnings were $2.57 per share, which lagged the Zacks Consensus Estimate of $2.62 per share by 1.9%. The bottom line decreased 39.7% on a year-over-year basis, due to lower sales. CSL’s revenues came in at $1,178.8 million, down 21.2% year over year. The top line missed the consensus estimate of $1,215 million by 6.5%.
Other Stocks to Consider
Here are some other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.
Emerson Electric Co. EMR has an Earnings ESP of +2.35% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2. Emerson’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 4.5%.
Allegion plc ALLE has an Earnings ESP of +3.94% and a Zacks Rank of 3. The company is scheduled to release second-quarter results on Jul 26.
ALLE’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.5%.
Ingersoll Rand Inc. IR has an Earnings ESP of +0.85% and a Zacks Rank of 3. The company is slated to release second-quarter 2023 results on Aug 2.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
