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Valued at a market cap of $68.8 billion, Carrier Global Corporation (CARR) specializes in HVAC, refrigeration, fire, and security solutions. Based in Palm Beach Gardens, Florida, it serves residential, commercial, and industrial markets worldwide with advanced building technology.
Shares of Carrier Global have outperformed the broader market over the past 52 weeks. CARR has returned 50.5% over this time frame, while the broader S&P 500 Index ($SPX) has soared 36.8%. In 2024, CARR shares have increased 33.5%, compared to SPX’s 25.7% gain on a YTD basis.
Zooming in further, CARR has also outpaced the Industrial Select Sector SPDR Fund’s (XLI) 40.3% rise over the past 52 weeks and a 24.7% YTD gain.
Carrier Global's stock tumbled 8.8% on Oct. 24 primarily due to its weaker-than-expected Q3 results, with adjusted earnings of $0.83 per share and net sales of around $6 billion. The company also lowered its full-year guidance, projecting 2024 sales to exceed $22.5 billion, down from the prior outlook of over $25.5 billion, and reduced expected EPS to $2.50 from the previous range of $2.80 to $2.90. The Fire & Security segment’s reclassification to discontinued operations also disrupted revenue expectations. Increased expenses, including a 36.5% rise in Research & development (R&D) and a 20.3% increase in Selling, general & administrative (SG&A), further pressured margins.
For the current fiscal year, ending in December, analysts expect CARR’s EPS to decline 8.1% year-over-year to $2.51. However, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”
This configuration is slightly less bullish than three months ago, with nine “Strong Buy” ratings on the stock.
On Oct. 28, Stephens lowered Carrier Global's price target to $80, maintaining an “Equal-Weight" rating after adjusting its model based on Q3 results and insights from the earnings call.
The mean price target of $82.50 represents a premium of only 7.6% to CARR’s current levels. The Street-high price target of $95, implies a potential upside of 23.9% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
