- Trane Technologies reported strong financial results for the 2nd quarter of 2024.
- Adjusted EPS from continuing operations was $3.30, beating the estimate of $3.09.
- Net revenue came in at $5.31 billion, surpassing the expected $5.13 billion.
- Americas net revenue was $4.29 billion, exceeding the estimate of $4.09 billion.
- EMEA net revenue slightly missed expectations at $645.3 million, compared to the estimate of $652.3 million.
- APAC net revenue fell short of estimates, reporting $371.2 million against the expected $404.3 million.
- Organic revenue growth stood at 13%, higher than the estimate of 8.74%.
- EMEA organic revenue was 5%, slightly above the estimate of 4.5%.
- Asia Pacific organic revenue declined by 3%, missing the estimate of a 6.36% increase.
- Adjusted EBITDA was $1.12 billion, surpassing the estimated $1.04 billion.
- Americas adjusted EBITDA was significantly higher at $978.2 million, compared to the estimate of $900.9 million.
- EMEA adjusted EBITDA was $131.0 million, above the estimate of $127.3 million.
- Asia Pacific adjusted EBITDA was $94.8 million, slightly over the estimate of $92.9 million.
- Adjusted operating income hit $1.03 billion, beating the estimate of $952.6 million.
- Analyst recommendations include 8 buys, 14 holds, and 2 sells.
Trane Technologies on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been bullish on Trane Technologies. In their report titled “Trane Technologies: Enhanced Capabilities in the Data Center Sector & Other Major Drivers,” Baptista Research highlights the company’s solid performance in the first quarter of 2024. They commend Trane’s successful business strategies and operational excellence, projecting strong investment opportunities due to positive market trends, ongoing innovation, and a promising revenue and earnings outlook for the year. The report also notes Trane’s impressive track record in megaprojects and building services, supported by a robust backlog of $7.7 billion, demonstrating a positive growth trajectory for the company.
A look at Trane Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided a comprehensive outlook for Trane Technologies, a company primarily focused on manufacturing industrial equipment. With a Smart Score of 4 for Growth and Momentum, the company is positioned favorably for long-term expansion and market performance. This indicates a positive trajectory for Trane Technologies in terms of potential growth and market momentum.
Although Trane Technologies received moderate scores in Value, Dividend, and Resilience, its high scores in Growth and Momentum hint towards a promising future for the company. With a strong emphasis on technological advancements and product development in the industrial sector, Trane Technologies is poised for continued growth and market success in the foreseeable future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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