Carrier Global CARR reported fourth-quarter 2024 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate by 5.88%. The figure surged 50% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales of $5.15 billion missed the Zacks Consensus Estimate by 3.48% but increased 19.3% year over year. Product sales (88% of net sales) of $4.53 billion increased 21.6% year over year. Service sales (12% of net sales) of $618 million were up 4.7% year over year.
 

Carrier Global Corporation Price, Consensus and EPS Surprise

Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote

CARR shares were up 1.15% in pre-market trading.

CARR’s Quarter in Details

HVAC revenues of $4.51 billion contributed 87.6% to net sales and increased 36.9% year over year. Sales increased 11% organically.

Americas sales were up high-teens organically, driven by continued strength in Commercial and North America Residential, both up double-digits on a year-over-year basis. EMEA sales were flat organically, with double-digit growth in Commercial. Asia Pacific sales were slightly positive, driven by strength in Japan and South Asia.

Refrigeration revenues of $680 million were down 33.6% year over year and contributed 13.2% to net sales. 

Research & development (R&D) expenses increased 17.4% year over year to $162 million. As a percentage of revenues, R&D expenses declined 10 basis points (bps) year over year.

Selling, general & administrative (SG&A) expenses rose 9% year over year to $803 million. As a percentage of revenues, SG&A expenses decreased 150 bps year over year.

Adjusted operating margin expanded 360 bps on a year-over-year basis to 13.2%. 

Adjusted operating margin in the HVAC segment expanded 250 bps year over year to 14.6%. The Refrigeration segment reported an adjusted operating margin of 12.1%, which expanded 150 bps year over year.

CARR’s Balance Sheet

As of Dec. 31, 2024, Carrier had cash and cash equivalents of $3.97 billion compared with $2.22 billion as of Sept. 30, 2024.

Total debt (including the current portion) as of Dec. 31, 2024, was $12.28 billion compared with $12.43 billion as of Sept. 30, 2024.

Carrier Offers Positive 2025 Outlook

For 2025, Carrier expects to achieve sales between $22.5 billion and $23 billion, reflecting mid-single-digit organic growth.

Adjusted operating margin is expected between 16.5% and 17%, up 100 bps over 2024. 

The company anticipates adjusted earnings between $2.95 per share and $3.05 per share, up mid to high-teens.

Free cash flow is expected between $2.4 billion and $2.6 billion.

Carrier expects to repurchase roughly $3 billion.

Zacks Rank & Other Stocks to Consider

Carrier currently carries a Zacks Rank #4 (Sell).

Arista Networks ANET, Twilio TWLO and DoorDash DASH are some better-ranked stocks in the broader sector. While ANET and TWLO sport a Zacks Rank #1 (Strong Buy) each, DASH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks is scheduled to report its fourth-quarter 2024 results on Feb. 18. Twilio is set to report fourth-quarter 2024 results on Feb. 13, while DoorDash is scheduled to report its fourth-quarter 2024 results on Feb. 11.

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

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

Twilio Inc. (TWLO) : Free Stock Analysis Report

Carrier Global Corporation (CARR) : Free Stock Analysis Report

DoorDash, Inc. (DASH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research