Carrier Global Q4 Earnings Tops Street View, Provides FY22 Outlook

Carrier Global Corp CARR reported fourth-quarter FY21 sales growth of 11.7% year-over-year to $5.13 billion, 11% on an organic basis, beating the consensus of $4.83 billion.
Sales by segments: HVAC $2.73 billion (+16.9% Y/Y), Refrigeration $1.09 billion (+14.9% Y/Y), and Fire & Security $1.43 billion (+2.4% Y/Y).
The operating margin for the quarter was 9% compared to 27.1% a year ago. The Adjusted operating profit increased by 14.1% Y/Y to $517 million, and the margin expanded by 21 bps to 10.1%.
Adjusted EPS improved to $0.44 compared to $0.31 in 4Q20, beating the consensus of $0.38.
Net cash flows provided by operating activities for FY21 were $2.24 billion compared to $1.69 billion a year ago, and free cash flow was $1.89 billion or 114% of net income.
The company held cash and equivalents of $2.99 billion as of December 31, 2021.
Related: Carrier Agrees To Acquire Toshiba's 55% Stake In TCC Joint Venture For ~$870M
FY22 Outlook (excludes recently announced Toshiba transaction): Carrier Global expects Sales of about $20 billion versus a consensus of $19.44 billion, with high single-digit organic sales growth; Adjusted operating margin up ~75 bps.
It expects Adjusted EPS of $2.20 - $2.30, versus a consensus of $2.27, and Free cash flow of ~$1.65 billion.
Price Action: CARR shares closed lower by 0.26% at $45.72 on Monday.

Earnings Calendar