Yahoo Finance A Look Back at HVAC and Water Systems Stocks' Q1 Earnings: Carrier Global (NYSE:CARR) Vs The Rest Of The Pack
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the hvac and water systems industry, including Carrier Global (NYSE:CARR) and its peers.
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The 6 hvac and water systems stocks we track reported a slower Q1; on average, revenues missed analyst consensus estimates by 0.8%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but hvac and water systems stocks have shown resilience, with share prices up 5.5% on average since the previous earnings results.
Carrier Global (NYSE:CARR)
Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.
Carrier Global reported revenues of $6.18 billion, up 17.2% year on year, falling short of analysts' expectations by 2.4%. Overall, it was a slower quarter for the company with a miss of analysts' organic revenue estimates.
"We continue to perform while transforming. We expanded adjusted operating margins by 280 basis points driven by very strong productivity while continuing to invest in our future," said Carrier Chairman & CEO David Gitlin.
Carrier Global scored the fastest revenue growth of the whole group. The stock is up 23.8% since reporting and currently trades at $67.80.
Read our full report on Carrier Global here, it's free.
Best Q1: Advanced Drainage (NYSE:WMS)
Originally started as a farm water drainage company, Advanced Drainage Systems (NYSE:WMS) provides clean water management solutions to communities across America.
Advanced Drainage reported revenues of $653.8 million, up 5.9% year on year, outperforming analysts' expectations by 6.9%. It was a stunning quarter for the company with a solid beat of analysts' earnings estimates.
Advanced Drainage delivered the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 3.4% since reporting. It currently trades at $170.17.
Is now the time to buy Advanced Drainage? Access our full analysis of the earnings results here, it's free.
Weakest Q1: AAON (NASDAQ:AAON)
Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.
AAON reported revenues of $262.1 million, down 1.4% year on year, falling short of analysts' expectations by 8%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
AAON posted the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 2.9% since the results and currently trades at $88.40.
Read our full analysis of AAON's results here.
Lennox (NYSE:LII)
Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.
Lennox reported revenues of $1.05 billion, flat year on year, in line with analysts' expectations. Overall, it was an ok quarter for the company with a decent beat of analysts' earnings estimates but in line with analysts' organic revenue estimates.
The stock is up 15.8% since reporting and currently trades at $551.48.
Read our full, actionable report on Lennox here, it's free.
Zurn Elkay (NYSE:ZWS)
Claiming to have saved more than 34 billion gallons of water due to its systems, Zurn Elkay (NYSE:ZWS) provides water management solutions to various industries.
Zurn Elkay reported revenues of $373.8 million, flat year on year, surpassing analysts' expectations by 1.3%. Zooming out, it was a weaker quarter for the company with a miss of analysts' organic revenue estimates.
The stock is down 3.9% since reporting and currently trades at $31.45.
Read our full, actionable report on Zurn Elkay here, it's free.
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