What Happened?
Shares of heating, ventilation, air conditioning, and refrigeration company Carrier Global (NYSE: CARR) fell 11.4% in the afternoon session after the company reported mixed second-quarter financial results and lowered its full-year sales guidance for its residential segment. Although the air conditioner maker beat analysts' estimates for second-quarter profit with a 26% year-over-year increase in adjusted earnings per share to $0.92, its revenue of $6.11 billion fell short of consensus estimates. Investor concern appeared to center on the company's outlook. Carrier lowered its full-year forecast for residential organic sales growth, citing a late start to the summer which led to a fall in orders. The market's negative reaction suggested that the revenue miss and reduced guidance for a key segment outweighed the strong profit performance.
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What Is The Market Telling Us
Carrier Global’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Carrier Global and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 12.1% on the news that the company reported weak third-quarter results, with revenue and EPS falling below analysts' expectations. Moving on, it lowered its full-year revenue and EPS guidance. The revised guidance also reflects the decision to discontinue operations in the Fire & Security segment. Overall, this was a softer quarter.
Carrier Global is up 4.7% since the beginning of the year, but at $71.54 per share, it is still trading 13.5% below its 52-week high of $82.67 from October 2024. Investors who bought $1,000 worth of Carrier Global’s shares 5 years ago would now be looking at an investment worth $2,632.
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