Trane Technologies (TT) Q4 Earnings Beat Estimates, Rise Y/Y

Trane Technologies plc TT reported better-than-expected fourth-quarter 2023 results.

Adjusted EPS of $2.17 surpassed the Zacks Consensus Estimate by 1.9% and increased 19.2% year over year.

Revenues of $4.4 billion missed the consensus mark by a slight margin but increased 8.6% year over year on a reported basis and 6% organically. Bookings were up 13% year over year on a reported basis and 12% organically.

Trane’s shares have gained 48.4% over the past year compared with the 25.8% rally of the industry it belongs to.

Revenues and Bookings

The Americas segment’s revenues of $3.4 billion were in line with our estimate and increased 8% year over year on a reported basis and 7% organically. Bookings were up 14% on a reported basis and 13% organically, at $3.6 billion.

Europe, Middle East and Africa segment’s revenues came in at $654.6 million, up 17% year over year on a reported basis and 8% organically, beating our estimate of $627.9 million. Bookings were up 18% year over year on a reported basis and 10% organically, at $570.2 million.

Revenues from the Asia Pacific segment were up 1% year over year on a reported basis and flat on an organic basis, to $379.2 million, missing our estimate of $396.9 million. Bookings of $339.1 million increased 3% on a reported basis and 2% organically.

Trane Technologies plc Price, Consensus and EPS Surprise

Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote

Operating Margin Performance

Adjusted operating income came in at $84.9 million, up 11% year over year. Adjusted operating margin improved 200 basis points to 22.4%.

Key Balance Sheet and Cash Flow Figures

Trane ended the quarter with a cash balance of $1.1 billion compared with $960 million in the previous quarter. The debt balance was $4.8 billion, flat with the previous quarter. It generated $944 million of cash from operating activities and a free cash outflow of $863 million in the quarter.

2024 Guidance

The company currently expects revenues to increase around 7% to 8% on a reported basis and 6% to 7% on an organic basis.

Adjusted EPS is expected to be between $10 and $10.3. The midpoint ($10.15) of the guided range is higher than the Zacks Consensus Estimate of $10.01.

Trane currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Robert Half RHI reported better-than-expected fourth-quarter 2023 results.

Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.

Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.

Broadridge Financial BR reported impressive second-quarter fiscal 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings of 92 cents per share beat the consensus mark by 4.6% and increased 1% year over year. BR’s total revenues of $1.41 billion beat the consensus mark by 0.9% and were up 9% year over year.

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