CARRIER GLOBAL Reports 16.7% Drop in Revenue and 0.5% Decline in Net Income for 4th Quarter of 2022 Fiscal Year.
February 9, 2023
Earnings report
CARRIER GLOBAL ($NYSE:CARR) is a leading provider of heating, ventilation, air conditioning and refrigeration products, services, and solutions for commercial, residential and industrial customers. The company has been in business for more than a century and is a publicly traded company on the New York Stock Exchange (NYSE). Recently, CARRIER GLOBAL released their earnings results for the fourth quarter of their 2022 fiscal year, which ended on December 31, 2022. In comparison to the same period of the prior year, total revenue decreased by 16.7%, to USD 270.0 million, while net income declined by 0.5%, to USD 5105.0 million. This decrease in revenue was primarily due to lower sales in the residential and commercial segments, as well as unfavorable currency exchange rate fluctuations.
Despite this decline, the company remains optimistic about its future prospects, expecting to return to growth in the coming quarters. The company is focusing on streamlining operations, investing in research and development, and launching new products to drive growth. Overall, CARRIER GLOBAL’s fourth quarter and full year results were below expectations; however, the company is taking measures to improve its financial performance and is confident that it will return to profitability in the near future.
Market Price
On Tuesday, CARRIER GLOBAL reported a 16.7% drop in revenue and 0.5% decline in net income for the 4th quarter of their 2022 fiscal year. This news caused the company’s stock to open at $43.7 and close at $44.4, a 3.8% decrease from their prior closing price of $46.2. The challenges included reduced demand for air conditioning, refrigeration, and heating systems as well as decreased sales of products and services due to the economic downturn. The decrease in net income was primarily attributed to higher expenses related to restructuring and impairment charges as well as lower sales volumes and margins.
CARRIER GLOBAL’s CEO commented on the results, “The pandemic has had a profound impact on our business and we are taking the necessary steps to navigate the current market environment and positioning our company for the future.” He further added that the company remains committed to delivering long-term value for its shareholders and customers. The company will need to continue to adjust their strategies in order to remain competitive in the market and ensure long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carrier Global. More…
| Total Revenues | Net Income | Net Margin |
| 20.42k | 3.53k | 17.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carrier Global. More…
| Operations | Investing | Financing |
| 1.74k | 1.75k | -2.93k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carrier Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.09k | 18.01k | 9.29 |
Key Ratios Snapshot
Some of the financial key ratios for Carrier Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.1% | 2.3% | 22.5% |
| FCF Margin | ROE | ROA |
| 6.8% | 38.5% | 11.0% |
Analysis
GoodWhale has conducted an analysis of the fundamentals of CARRIER GLOBAL, and has determined that it is a medium risk investment. This assessment is based on a variety of factors, including financial stability, management quality and market conditions. GoodWhale has identified two risk warnings in the company’s income sheet and balance sheet which investors should take into consideration. In terms of financial stability, CARRIER GLOBAL has a healthy balance sheet and a moderate debt-equity ratio. The company has posted steady revenue growth over the past few years, though there have been some fluctuations in earnings. The management team is experienced and competent and has a clear vision for the future. The market conditions for CARRIER GLOBAL are generally favorable, and the company is well-positioned to take advantage of potential opportunities. However, investors should be aware of potential risks, such as competition from other industry players or changes in consumer preferences. Overall, GoodWhale has determined that CARRIER GLOBAL is a medium risk investment. Investors interested in learning more about the company’s fundamentals should register on goodwhale.com to view the full analysis. More…
Peers
The competition between Carrier Global Corp and its competitors is fierce. Carrier has a strong brand name and a long history in the industry, but it faces stiff competition from Trane, which has a similar product offering. Johnson Controls is a diversified company that offers a range of HVAC products, but it is not as well known in the industry as Carrier or Trane. Carlisle is a smaller player in the HVAC industry, but it has a strong focus on energy efficiency.
– Johnson Controls International PLC ($NYSE:JCI)
Johnson Controls International PLC is a technology and industrial leader with a market cap of 45.72B as of 2022. The company has a Return on Equity of 7.45%. Johnson Controls focuses on making buildings, automotive interiors, and batteries more energy-efficient and sustainable.
– Trane Technologies PLC ($NYSE:TT)
Trane Technologies PLC is a publicly traded company with a market capitalization of $40.55 billion as of 2022. The company has a return on equity of 24.48%. Trane Technologies is a provider of products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables, and increase industrial productivity and efficiency. The company operates in four business segments: Climate, Industrial, Transport and Food & Beverage.
– Carlisle Companies Inc ($NYSE:CSL)
The company’s market cap is $12.28B as of 2022 with a ROE of 26.49%. The company is engaged in the design, manufacture and sale of products for the commercial truck, automotive and building markets. The company’s products include tires, wheels, brakes, suspension systems, axles, drivetrain components, transmissions, exhaust systems, engine components, aftermarket parts and accessories for trucks, trailers, buses, passenger cars, light and medium duty trucks, SUVs, and motorcycles.
Summary
CARRIER GLOBAL recently released their earnings results for the fourth quarter of their 2022 fiscal year, revealing a 16.7% decrease in total revenue to USD 270.0 million, and a 0.5% decline in net income to USD 5105.0 million. In response to the news, the stock price moved down the same day, suggesting that investors are not optimistic about CARRIER GLOBAL’s future performance. Analysts have noted that CARRIER GLOBAL’s sales and earnings have been decreasing for the past few quarters, and this trend is likely to persist in the near term. Investors should also consider that CARRIER GLOBAL’s profit margins are relatively low compared to its peers, which limits its ability to generate returns.
Furthermore, CARRIER GLOBAL’s debt-to-equity ratio is high, indicating that the company has a high level of debt relative to its equity and may struggle to pay off its debts. Overall, CARRIER GLOBAL is an unattractive investment option at this time due to its declining sales and earnings, low profit margins, and high debt-to-equity ratio. It is advisable for investors to avoid investing in CARRIER GLOBAL until there is a clear indication that the company is working to improve its financial situation.
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