Trane Technologies plc TT reported better-than-expected first-quarter 2024 results.
Adjusted EPS of $1.94 surpassed the Zacks Consensus Estimate by 18.3% and increased 37.6% year over year.
Revenues of $4.2 billion beat the consensus mark by 5.7% and increased 15% year over year on a reported basis and 14% organically. Bookings were up 18% year over year on a reported basis and 17% organically.
Trane Technologies plc Price, Consensus and EPS Surprise 
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Revenues and Bookings
The Americas segment’s revenues of $3.3 billion were higher than our estimate of $3.1 billion and increased 17% year over year on a reported basis and 15% organically. Bookings were up 21% on a reported basis and 20% organically, at $4 billion.
Europe, Middle East and Africa segment’s revenues came in at $553.4 million, up 8% year over year on a reported basis and 4% organically, missing our estimate of $603.6 million. Bookings were up 12% year over year on a reported basis and 7% organically, at $660.2 million.
Revenues from the Asia Pacific segment were up 11% year over year on a reported basis and 16% on an organic basis, to $327.3 million, beating our estimate of $314 million. Bookings of $396.9 million increased 2% on a reported basis and 6% organically.
Operating Margin Performance
Adjusted operating income came in at $640 million, up 36% year over year. Adjusted operating margin improved 230 basis points to 15.2%.
Key Balance Sheet and Cash Flow Figures
Trane ended the quarter with a cash balance of $850 million compared with $1.1 billion in the previous quarter. The debt balance was $4.9 billion compared with $4.8 billion in the previous quarter. It generated $254 million of cash from operating activities and free cash of $175 million in the quarter.
2024 Guidance
The company raised its 2024 guidance. It currently expects revenues to increase 8% to 9% on a reported as well as organic basis. The previous expectation was 7% to 8% growth on a reported basis and 6% to 7% growth on an organic basis.
Adjusted EPS is expected to be between $10.30 and $10.40 up from $10 to $10.3 expected previously. The revised guided range is higher than the Zacks Consensus Estimate of $10.20.
Trane currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Business Service Stocks
Omnicom OMC reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax EFX reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, ahead of the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
ManpowerGroup MAN reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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