Trane Technologies Poised to Reveal Strong Q3 Earnings
Market Watch: Analysts Expect Earnings Growth Amid Rising Demand
With a market cap of $90.7 billion, Trane Technologies plc (TT) operates in the industrial sector, specializing in climate control solutions. The company, based in Swords, Ireland, designs, manufactures, and services heating, ventilation, air conditioning (HVAC), and transport refrigeration systems. Products are distributed globally under the Trane and Thermo King brands. TT is set to announce its fiscal Q3 earnings results before the market opens on Wednesday, Oct. 30.
Leading up to this announcement, analysts predict that the company will report a profit of $3.23 per share. This reflects a 15.8% increase from $2.79 per share during the same quarter last year. Notably, Trane Technologies has consistently exceeded Wall Street’s earnings expectations for the past four quarters, with a 7.1% margin above the consensus estimate in the latest quarter.
For fiscal 2024, expectations remain high with analysts forecasting TT’s earnings per share (EPS) to reach $10.89, representing a growth of 20.5% from $9.04 in fiscal 2023.
Over the past 52 weeks, Trane Technologies’ shares have surged by 109.4%. This performance notably outstrips the broader S&P 500 Index’s ($SPX) 38.5% gain, alongside the Industrial Select Sector SPDR Fund’s (XLI) 38.9% increase.
On July 31, shares of Trane Technologies increased by 1.7% following the company’s decision to raise its full-year adjusted EPS forecast to $10.80 per share. Additionally, revenue growth expectations were increased to 10%. This positive revision was largely due to high demand for air conditioning systems driven by significant heatwaves impacting commercial buildings. Furthermore, Q2 earnings showcased solid performance with earnings of $3.30 per share and revenue of $5.3 billion, surpassing analyst expectations and boosting investor confidence.
Analysts maintain a consensus rating on Trane Technologies stock characterized as a “Moderate Buy.” Among 19 analysts tracking the stock, there are six “Strong Buys,” 12 “Holds,” and one “Strong Sell.” This rating reflects a slight increase in bullish sentiment compared to three months ago, when only five analysts rated the stock as a “Strong Buy.” Currently, TT trades just below the average analyst price target of $392.71.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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