NYSE$CARR

Carrier Global Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Carrier's Q3 2020 results reflected a solid performance driven by strong North American residential HVAC and progress on growth and cost initiatives.

Carrier Global Corporation reported a 4% increase in sales to $5 billion in the third quarter of 2020, with organic sales growth of 3%. GAAP EPS was $0.84 and adjusted EPS was $0.67. The company is raising its full-year outlook for sales, adjusted operating profit, and free cash flow.

  • Third quarter sales increased by 4% year-over-year to $5 billion.
  • GAAP EPS was $0.84, and adjusted EPS was $0.67.
  • The company is increasing its three-year savings target by $100 million, renaming the Carrier 600 program to Carrier 700.
  • Plans to reduce debt by $1.5 billion in the fourth quarter of 2020, backed by stronger than expected free cash flow.

Headline financials

Total Revenue

$5B

Previous: $4.82B+3.7%
EPS (adj)

$0.67

Previous: $0.57+17.5%
Organic Sales Growth

3.0%

No prior period
Free Cash Flow

$741M

No prior period
Net Income

$741M

Previous: $492M+50.6%
Operating Income

$1.08B

Previous: $629M+71.9%
Gross Profit

$1.56B

Previous: $1.45B+8.0%
Cash & Equivalents

$3.85B

Previous: $862M+346.4%
Total Assets

$25.7B

No prior period
Stock-Based Comp

$21M

Previous: $18M+16.7%

Revenue & EPS history

Carrier · Revenue · Quarterly

$5B

Q3 2020+3.7%vs Q3 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Forward guidance

Carrier is raising its full-year 2020 outlook.

Tailwinds

  • Sales of approximately $17.3 billion, up from a range of $15.5 to $17.0 billion
  • Adjusted operating profit of approximately $2.2 billion, up from a range of $1.8 to $2.0 billion
  • Free cash flow of approximately $1.5 billion, up from at least $1.1 billion
  • Plans to reduce the Company's debt by $1.5 billion in the fourth quarter 2020
  • Stronger than expected free cash flow will support plans to reduce the Company's debt

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 Q3 2020

Historical avgQ3 2020

+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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