NYSE$CARR

Carrier Global Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Carrier's Q4 2020 earnings surpassed expectations due to strong demand in North America residential HVAC and continued traction on growth and cost containment initiatives.

Carrier's Q4 2020 sales reached $4.6 billion, driven by strong demand in North America residential HVAC. GAAP EPS was $1.00, and adjusted EPS was $0.31. The company anticipates growth in sales, adjusted EPS, adjusted operating margin, and free cash flow in 2021.

  • Sales of $4.6 billion driven by strong demand in North America residential HVAC
  • GAAP EPS of $1.00 and adjusted EPS of $0.31
  • Results included $50 million in vendor contract termination, legal and related costs
  • Prepaid $1.75 billion term loan credit facility

Headline financials

Total Revenue

$4.59B

Previous: $4.5B+2.1%
EPS (adj)

$0.31

Previous: $0.50-38.0%
Net Income

$884M

Previous: $440M+100.9%
Operating Income

$1.25B

Previous: $557M+123.5%
Gross Profit

$1.29B

Previous: $1.27B+0.9%
Cash & Equivalents

$3.12B

Previous: $952M+227.2%
Total Assets

$25.1B

Previous: $22.4B+12.0%
Stock-Based Comp

$21M

Previous: $12M+75.0%

Revenue & EPS history

Carrier · Revenue · Quarterly

$4.59B

Q4 2020+2.1%vs Q4 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Forward guidance

Carrier anticipates growth in sales, adjusted EPS, adjusted operating margin and free cash flow in 2021

Tailwinds

  • Sales growth of 6% to 8%
  • Organic sales up 4% to 6%
  • Currency translation to add approximately 2%
  • Adjusted operating margin of approximately 13.5%, up 70bps
  • Adjusted EPS of $1.85 to $1.95, up 14% at midpoint

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 Q4 2020

Historical avgQ4 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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