NYSE$CARR

Carrier Global Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong financial results and raised full year guidance.

Carrier Global Corporation reported strong financial results for the second quarter of 2023. Net sales were up 15% compared to the prior year, with organic sales growing 6%. The company raised its full year revenue, adjusted operating margin, and adjusted EPS guidance.

  • Net sales increased by 15% compared to the second quarter of 2022, with organic sales up by 6%.
  • GAAP EPS was $0.23, and adjusted EPS was $0.79.
  • Net cash inflows from operating activities amounted to $384 million, with free cash flow generation reaching $310 million.
  • Adjusted EPS guidance was increased from $2.50 - $2.60 to $2.55 - $2.65, driven by strong performance in the first half of the year.

Headline financials

Total Revenue

$5.99B

Previous: $5.21B+15.0%
EPS (adj)

$0.79

Previous: $0.69+14.5%
Organic Sales Growth

6.0%

Previous: 7.0%-14.3%
Free Cash Flow

$233M

Previous: $587M-60.3%
Net Income

$233M

Previous: $587M-60.3%
Operating Income

$489M

Previous: $819M-40.3%
Gross Profit

$1.76B

Previous: $1.45B+21.3%
Cash & Equivalents

$3.21B

Previous: $3.02B+6.4%
Total Assets

$26.3B

Previous: $23.7B+11.1%
Stock-Based Comp

$18M

Previous: $20M-10.0%

Revenue & EPS history

Carrier · Revenue · Quarterly

$5.99B

Q2 2023+15%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Carrier updated the following guidance for 2023, which now reflects the deconsolidation of KFI as of its Chapter 11 filing date of May 14, 2023:

Tailwinds

  • Sales over $22B
  • Organic up MSD
  • FX ~0%
  • Acquisitions / Divestitures, net +~5%
  • Adjusted Operating Margin *14.0% - 14.5%

Headwinds

  • Includes ~50bps negative impact from TCC
  • Adjusted EPS *$2.55 - $2.65
  • Free Cash Flow ~$1.9B
  • When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort.
  • The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.6%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+6.5%

Avg return

30 days after

50%

15 / 30 earnings

Positive

+11.8%

Q1 2020

Best reaction

-10.6%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.9%+4.0%+3.6%
Q4 2025-0.7%+3.6%-8.2%
Q3 2025+0.9%+2.1%-6.7%
Q2 2025-10.6%-16.5%-17.5%
Q1 2025+11.6%+12.2%+13.8%
Q4 2024-1.6%-1.7%-3.0%
Q3 2024-7.8%-6.7%-3.7%
Q2 2024+1.2%+2.2%+8.0%
Q1 2024+10.5%+12.3%+19.9%
Q4 2023-4.3%-0.4%+5.8%
Q3 2023-1.1%+1.3%+12.6%
Q2 2023+8.4%+9.9%+1.1%
Q1 2023-3.1%-0.3%-1.7%
Q4 2022-2.4%-2.9%+0.0%
Q3 2022+7.6%+6.9%+19.0%
Q2 2022+2.5%+2.2%+1.8%
Q1 2022-4.9%-4.7%-0.1%
Q4 2021+4.9%-0.5%-4.2%
Q3 2021-1.7%-1.4%+4.2%
Q2 2021+7.1%+10.9%+13.1%
Q1 2021-2.0%-3.1%+3.2%
Q4 2018-6.3%-6.1%-1.2%
Q4 2020-6.3%-6.1%-1.2%
Q3 2019+0.3%+11.0%+13.5%
Q3 2020+0.3%+11.0%+13.5%
Q2 2019+2.7%+4.5%+12.6%
Q2 2020+0.2%+2.2%+11.5%
Q4 2019-3.1%-9.0%+20.9%
Q1 2019-3.1%-9.0%+20.9%
Q1 2020+11.8%+0.2%+43.6%

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