HVAC company Trane (NYSE: TT) will be reporting results tomorrow morning. Here’s what you need to know.
Trane Technologies beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $4.87 billion, up 10.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance slightly topping analysts’ expectations.
Is Trane Technologies a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Trane Technologies’s revenue to grow 5.9% year on year to $4.46 billion, slowing from the 15% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Trane Technologies has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Trane Technologies’s peers in the building products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lennox delivered year-on-year revenue growth of 2.4%, beating analysts’ expectations by 4.6%, and Zurn Elkay reported revenues up 4%, topping estimates by 1.4%. Lennox traded down 6.5% following the results while Zurn Elkay was up 4.9%.
Read our full analysis of Lennox’s results here and Zurn Elkay’s results here.
Investors in the building products segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Trane Technologies is up 5.8% during the same time and is heading into earnings with an average analyst price target of $381.80 (compared to the current share price of $356.51).
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