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CARR Set to Report Q4 Earnings: What's in Store for the Stock?

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Carrier Global (CARR - Free Report) is scheduled to report its fourth-quarter 2024 results on Feb. 11.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 51 cents per share, which has increased by a penny over the past 30 days, suggesting a year-over-year decline of 3.77%

The Zacks Consensus Estimate for revenues is pegged at $5.43 billion, indicating 6.42% year-over-year growth.

Carrier Global Corporation Price and EPS Surprise

Carrier Global Corporation Price and EPS Surprise

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

Carrier Global’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.19%. 

Let’s see how things have shaped up for the upcoming announcement.

Factors Likely to Have Influenced CARR’s Q4 Performance

Carrier Global’s strong momentum in the Heating, Ventilating and Air Conditioning (HVAC) and aftermarket services is expected to have contributed to top-line growth in the fourth quarter. The growing requirement for heating and cooling systems across residential and commercial applications is expected to have driven the HVAC segment. 

The Zacks Consensus Estimate for fourth-quarter 2024 HVAC revenues is pegged at $4.39 billion, indicating 33.31% year-over-year growth. 

Carrier Global is seeing strong order growth in key segments, particularly in North America, where residential HVAC orders increased 30% year over year in the third quarter of 2024. Global commercial HVAC orders were also up 15%, with strong demand in data centers. The company expects these trends to have continued into the fourth quarter as well.

Carrier Global’s aftermarket services, which involve the repair, maintenance, and replacement of equipment, have been a consistent revenue generator. The company has been seeing a double-digit growth in this segment for several years, and this trend is likely to have continued in the to-be-reported quarter as well.  

The data center market is expected to grow significantly due to the increasing heat generation from AI chips. Carrier Global’s efforts to capitalize on this growth by securing key wins and optimizing its global footprint are likely to have driven sales in the segment in the fourth quarter of 2024. 

The integration of Viessmann Climate Solutions is also expected to have enhanced CARR’s capabilities and market reach in the to-be-reported quarter, particularly in heat pump technology and sustainable solutions.

The completion of key divestitures, such as the sale of the commercial refrigeration business and the ongoing exit from the fire & security business, is expected to have improved the company’s focus and profitability. These divestitures will streamline operations and contribute to better financial performance in the to-be-reported quarter.

However, weakness in Europe and China affected RLC businesses, and softness in commercial refrigeration is expected to have hurt the company’s performance in the to-be-reported quarter.

What Our Model Says for CARR

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Carrier Global has an Earnings ESP of -0.55% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Akamai Technologies (AKAM - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Akamai Technologies shares have lost 19.6% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.

Yelp (YELP - Free Report) presently has an Earnings ESP of +12.87% and a Zacks Rank #3.

Yelp shares have plunged 9.5% in the trailing 12 months. YELP is set to report its fourth-quarter 2024 results on Feb. 13.

Twilio (TWLO - Free Report) has an Earnings ESP of +3.28% and a Zacks Rank #1.

Twilio shares have appreciated 111.1% in the trailing 12 months. TWLO is set to report its fourth-quarter 2024 results on Feb. 13.

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