Carrier Global Reports Mixed Q3 Results, Eyes 'High-End' Of FY21 EPS Outlook

Carrier Global Corp CARR reported third-quarter FY21 sales growth of 7% year-over-year to $5.34 billion, +4% on an organic basis, missing the consensus of $5.38 billion.
The company mentions that sales strength continued in the HVAC segment, with solid light commercial and aftermarket sales performance offsetting the expected modest North American residential HVAC decline in the quarter.
Sales by segments: HVAC $3.05 billion (+5.6% Y/Y), Refrigeration $1.01 billion (+15.4% Y/Y), and Fire & Security $1.38 billion (+4% Y/Y).
Adjusted EPS improved to $0.71 compared to $0.67 in 3Q20, beating the consensus of $0.66.
The Adjusted operating profit decreased by 1% Y/Y to $858 million, and the margin contracted by 120 bps to 16.1%.
Net cash flows provided by operating activities were $579 million, and free cash flow was $505 million. It held cash and equivalents of $2.67 billion.
FY21 Outlook: Carrier Global expects sales growth of ~16% Y/Y (up from prior 14% - 16%) and organic sales growth of +~13% Y/Y (up from prior +10% - 12% Y/Y).
It expects an adjusted operating margin greater than 13.5%. Adjusted EPS of ~$2.20 (prior $2.10 - $2.20) versus the consensus of $2.20.
Price Action: CARR shares traded higher by 2.07% at $54.26 on the last check Thursday.

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