NYSE$CARR

Carrier Global Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong financial results for the fourth quarter, capping a full year 2021 that exceeded expectations.

Carrier's Q4 2021 sales were $5.1 billion, up 12% compared to the prior year, with organic sales up 11%. GAAP EPS was $0.36 and adjusted EPS was $0.44. Net cash flow from operating activities was $913 million, and free cash flow was $775 million.

  • Sales of $5.1 billion, up 12% compared to 2020 including 11% organic growth
  • GAAP EPS of $0.36 and adjusted EPS of $0.44
  • Net cash flow from operating activities of $913 million
  • Free cash flow of $775 million

Headline financials

Total Revenue

$5.13B

Previous: $4.59B+11.7%
EPS (adj)

$0.44

Previous: $0.31+41.9%
Organic Sales Growth

11.0%

No prior period
Free Cash Flow

$775M

No prior period
Net Income

$324M

Previous: $884M-63.3%
Operating Income

$463M

Previous: $1.25B-62.8%
Gross Profit

$1.37B

Previous: $1.29B+6.3%
Cash & Equivalents

$2.99B

Previous: $3.12B-4.1%
Total Assets

$26.2B

Previous: $25.1B+4.3%
Stock-Based Comp

$32M

Previous: $21M+52.4%

Revenue & EPS history

Carrier · Revenue · Quarterly

$5.13B

Q4 2021+11.7%vs Q4 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Forward guidance

Carrier projects solid organic growth and adjusted operating margin expansion in 2022 and is well-positioned with a strong balance sheet with significant capital to deploy towards continued value creation.

Tailwinds

  • Sales of about $20 billion
  • High single-digit organic sales growth
  • Adjusted operating margin up ~75 bps
  • Adjusted EPS of $2.20 - $2.30, up double-digits adjusting for the Chubb divestiture
  • Free cash flow of ~$1.65 billion, which includes a ~$200 million tax payment related to the gain on the Chubb sale

Headwinds

  • Outlook excludes recently announced Toshiba acquisition, expected to close before the end of Q3 2022
  • ~1% FX impact on sales
  • ~10% Divestitures impact on sales
  • Includes ~$200M in tax payments on Chubb gain
  • Unspecified impacts of acquisitions

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 2021

Historical avgQ4 2021

+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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