Carrier Global Q1 Earnings & Revenues Beat Estimates, Stock Up

Carrier Global CARR reported first-quarter 2025 adjusted earnings of 65 cents per share, which beat the Zacks Consensus Estimate by 12.07% and surged 27.5% year over year.Net sales of $5.21 billion beat the Zacks Consensus Estimate by 1.91% but decreased 3.7% year over year. Product sales (89.2% of net sales) of $4.65 billion declined 3.9% year over year. Service sales (10.8% of net sales) of $566 million were down 2.1% year over year.As part of its portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025. The company’s revised reportable segments consist of the following: Climate Solutions Americas, Climate Solutions Europe, Climate Solutions Asia Pacific Middle East & Africa, and Climate Solutions Transportation.CARR earnings beat the Zacks Consensus Estimate in all four trailing quarters, the surprise being 8.68%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Carrier Global Corporation Price, Consensus and EPS Surprise Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation QuoteCARR shares gained 5.92% in pre-market trading.CARR’s Quarter in DetailsClimate Solutions Americas (CSA) revenues of $2.57 billion contributed 49.3% to net sales and increased 9% year over year. Sales increased 9% organically. This increase was driven by strong performance in both Commercial and Residential, each seeing a rise of approximately 20%, which more than compensated for the decline in Light Commercial.Climate Solutions Europe (CSE) revenues of $1.16 billion contributed 22.4% to net sales and decreased 10% year over year. Sales decreased 7% organically as mid-single-digit growth in the Commercial segment was offset by a low-double-digit decline in the Residential and Light Commercial segments.Climate Solutions Asia Pacific Middle East & Africa (CSAME) revenues of $826 million contributed 15.8% to net sales and declined 7% year over year. Sales decreased 6% organically, driven by declines in Residential Light Commercial in China, partially offset by strength in other countries.Climate Solutions Transportation (CST) revenues of $651 million contributed 12.5% to net sales and decreased 26% year over year. Sales increased 2% organically, which was due to 20% growth in Container, partially offset by declines in Europe and North America Truck and Trailer. Research & development (R&D) expenses decreased 20.3% year over year to $153 million. As a percentage of revenues, R&D expenses declined 60 basis points (bps) year over year.Selling, general & administrative (SG&A) expenses declined 9.7% year over year to $729 million. As a percentage of revenues, SG&A expenses decreased 90 bps year over year.Adjusted operating margin expanded 210 bps on a year-over-year basis to 16.2%.Adjusted operating margin in the Climate Solutions Americas segment expanded 420 bps year over year to 22.2%. Climate Solutions Europe segment contracted 390 bps year over year to 9%. Climate Solutions Asia Pacific Middle East & Africa segment expanded 240 bps year over year to 14.6%. Climate Solutions Transportation segment expanded 210 bps year over year to 14.9%.CARR’s Balance SheetAs of March 31, 2025, Carrier had cash and cash equivalents of $1.69 billion compared with $3.97 billion as of Dec. 31, 2024.Total debt (including the current portion) as of March. 31, 2025, was $11.18 billion compared with $12.28 billion as of Dec. 31, 2024.The company generated $483 million in cash from operations compared with $563 million in the previous quarter.Free cash flow was $420 million compared with $30 million reported in the prior quarter.In the first quarter of 2025, CARR repurchased $1.3 billion of its shares and paid $200 million in dividends.Carrier Offers Positive 2025 OutlookFor 2025, Carrier expects to achieve sales of $23 billion, reflecting mid-single-digit organic growth.Adjusted operating margin is expected to be between 16.5% and 17%, up 100 bps from 2024. The company anticipates adjusted earnings between $3 per share and $3.10, up mid to high-teens.Free cash flow is expected to be between $2.4 billion and $2.6 billion.Zacks Rank & Stocks to ConsiderCarrier currently carries a Zacks Rank #3 (Hold).Affirm AFRM, Criteo CRTO and Paycom Software PAYC are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. AFRM, CRTO and PAYC sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Affirm shares have lost 18.3% year to date. AFRM is set to report its third-quarter fiscal 2025 results on May 8.Criteo shares have lost 13.9% year to date. CRTO is set to report its first-quarter 2025 results on May 2.Paycom Software shares have gained 10.4% year to date. PAYC is set to report its first-quarter 2025 results on May 7.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Criteo S.A. (CRTO): Free Stock Analysis Report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Carrier Global Corporation (CARR): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks