Why Is Trane Technologies (TT) Down 3.1% Since Last Earnings Report?

A month has gone by since the last earnings report for Trane Technologies (TT). Shares have lost about 3.1% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Trane Technologies due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Trane Technologies plc before we dive into how investors and analysts have reacted as of late.Trane Technologies Q2 Earnings Beat EstimatesTrane Technologies reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.Adjusted EPS of $3.88 surpassed the Zacks Consensus Estimate by 3.2% and increased 17.6% year over year.Revenues of $5.75 billion marginally missed the consensus mark by 0.3% but rose 8.3% year over year on a reported basis and organically. Bookings were up 5% year over year on a reported basis and 4% year over year organically.TT’s Revenues and BookingsThe Americas segment’s revenues of $4.7 billion missed our estimate of $4.76 billion but increased 9% year over year on a reported basis and organically. Bookings were up 8% on a reported basis and 7% organically to $4.54 billion.The Europe, Middle East and Africa segment’s revenues came in at $707.9 million, up 10% year over year on a reported basis and 3% organically, beating our estimate of $641.2 million. Bookings were up 5% year over year on a reported basis and decreased 2% organically to $669.4 million.Revenues from the Asia Pacific segment were down 7% year over year on a reported basis and 8% organically to $346.2 million, beating our estimate of $333.3 million. Bookings declined 16% year over year on a reported basis and 17% organically to $377.7 million.Balance Sheet and Cash Flow Figures of TTTrane ended the quarter with a cash balance of $774.2 million compared with $1.6 billion in the March-end quarter of 2025. The debt balance was $3.9 billion compared with $4.3 billion in the March-end quarter of 2025. The company generated $1.04 billion of cash from operating activities and free cash of $841 million in the quarter.TT’s 2025 GuidanceFor 2025, TT expects revenue growth of approximately 9% and organic revenue growth of approximately 8% compared with full-year 2024.Adjusted EPS for full-year 2025 is expected to be approximately $13.05. The guidance is higher than the Zacks Consensus Estimate of $12.92.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.VGM ScoresAt this time, Trane Technologies has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Trane Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 Trane Technologies plc (TT): 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