Trane Technologies Q4 Earnings & Revenues Beat Estimates, Rise Y/Y

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Trane Technologies plc TT reported better-than-expected fourth-quarter 2024 results.

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Adjusted EPS of $2.61 surpassed the Zacks Consensus Estimate by 2.8% and increased 20.3% year over year.

Revenues of $4.9 billion beat the consensus mark by 2.2% and rose 10.2% year over year on a reported basis and organically. Bookings were up 11% year over year on a reported basis and organically.

Trane Technologies plc Price, Consensus and EPS Surprise

Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote

TT’s Revenues and Bookings

The Americas segment’s revenues of $3.8 billion were higher than our estimate of $3.7 billion and increased 12.2% year over year on a reported basis and organically. Bookings were up 1% on a reported basis and organically to $3.7 billion.

The Europe, Middle East and Africa segment’s revenues came in at $690.3 million, up 5% year over year on a reported basis and 7% organically, missing our estimate of $700.2 million. Bookings were up 8% year over year on a reported basis and 9% organically to $614.8 million.

Revenues from the Asia Pacific segment were up 1% year over year on a reported basis and organically to $381.2 million, beating our estimate of $337 million. Bookings were up 8% year over year on a reported basis and organically to $367.8 million.

Balance Sheet and Cash Flow Figures of TT

Trane ended the quarter with a cash balance of $1.6 billion compared with $1.1 billion in the previous quarter. The debt balance was $4.3 billion compared with $4 billion in the previous quarter. The company generated $3.2 billion of cash from operating activities and free cash of $2.8 billion in the quarter.

TT’s 2025 Guidance

For 2025, TT expects revenue growth of 6.5-7.5% and organic revenue growth of approximately 7-8% compared with full-year 2024.

Adjusted EPS for full-year 2025 is expected between $12.70 and $12.90. The guidance is higher than the Zacks Consensus Estimate of $11.86.

Trane currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

TransUnion TRU: The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $1.03 billion, indicating a year-over-year increase of 7.7%. For earnings, the consensus mark is pegged at 96 cents per share, suggesting a 20% increase from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in each of the past four quarters, with an average surprise of 7.3%.

TRU has an Earnings ESP of +0.27% and a Zacks Rank #3 at present. The company is scheduled to declare its fourth-quarter 2024 results on Feb. 13. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fidelity National Information Services FIS: The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $2.63 billion, indicating year-over-year growth of 4.9%. For earnings, the consensus mark is pegged at $1.35 per share, implying 43.6% growth from the year-ago quarter’s actual. The company beat the Zacks Consensus Estimate in three of the past four quarters and missed once in the remaining, the average surprise being 8.2%.

FIS has an Earnings ESP of +0.41% and a Zacks Rank #2. The company is scheduled to declare its fourth-quarter 2024 results on Feb. 11.

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Robert Half Q4 Earnings & Revenues Miss Estimates, Decline Y/Y

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Fidelity National Information Services

Robert Half International Inc. RHI reported narrower-than-expected fourth-quarter 2024 results.

Quarterly earnings of 53 cents per share missed the consensus mark by 1.9% and declined 36.4% year over year. Revenues of $1.38 billion lagged the consensus mark marginally and decreased 6.2% year over year.

Robert Half Inc. Price, Consensus and EPS Surprise

Robert Half Inc. price-consensus-eps-surprise-chart | Robert Half Inc. Quote

The company’s shares have depreciated 13.1% year to date compared with the industry’s 13.2% decline.

RHI’s Talent Solutions Revenues Down, Protiviti Up

Talent Solutions’ revenues of $894 million decreased 11.4% year over year on an as-adjusted basis and came in below our estimate of $902.6 million. U.S. Talent Solutions’ revenues of $686 million were down 11% year over year. Non-U.S. Talent Solutions revenues also decreased 14% year over year on an adjusted basis to $208 million.

Protiviti revenues came in at $488 million, up 5% year over year on an as-adjusted basis and above our expectation of $481.5 million. The U.S. Protiviti revenues of $396 million increased 6% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $92 million remained flat year over year on an as-adjusted basis.

Currency exchange rate movements declined revenues by $4 million in the quarter. The quarter had 61.6 billing days compared with 61.1 billing days in the year-ago quarter.

RHI’s Margins Contract

The adjusted gross profit in the quarter was $537.2 million, down 9.4% year over year. The adjusted gross profit margin of 38.9% declined 140 basis points year over year.

RHI’s Key Balance Sheet and Cash Flow Figures

Robert Half ended the quarter with a cash and cash equivalent balance of $537.6 million compared with $731.7 million in the fourth quarter of 2023. Operating cash in the quarter was $155 million, and capital expenditures were $14.3 million. RHI paid out $54 million in dividends and repurchased shares worth $77 million in the reported period.

Robert Half’s 2025 Guidance

For the first quarter of 2025, Robert Half expects revenues in the band of $1.35-$1.45 billion. The midpoint ($1.40 billion) of the guided range is below the current Zacks Consensus Estimate of $1.41 billion.

EPS is expected between 31 cents and 41 cents. The Zacks Consensus Estimate is currently pegged at 54 cents.

Moreover, the company expects 61.9 billing days in the first quarter of 2025. For the remaining three quarters of 2025, RHI expects 63.2, 64.2 and 61.4 for a total of 250.7 billing days for the year.

Currently, Robert Half carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

FIS has an Earnings ESP of +0.41% and a Zacks Rank #2. The company is scheduled to declare its fourth-quarter 2024 results on Feb. 11.

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Compared to Estimates, Trane Technologies (TT) Q4 Earnings: A Look at Key Metrics

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Trane Technologies

-0.85%

For the quarter ended December 2024, Trane Technologies (TT) reported revenue of $4.87 billion, up 10.2% over the same period last year. EPS came in at $2.61, compared to $2.17 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $4.77 billion, representing a surprise of +2.18%. The company delivered an EPS surprise of +2.76%, with the consensus EPS estimate being $2.54.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Trane Technologies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total Bookings: $4.66 billion versus $4.96 billion estimated by two analysts on average.
Revenues- Americas: $3.80 billion versus the five-analyst average estimate of $3.72 billion. The reported number represents a year-over-year change of +12.2%.
Revenues- EMEA: $690.30 million compared to the $685.59 million average estimate based on five analysts. The reported number represents a change of +5.5% year over year.
Revenues- Asia Pacific: $381.20 million versus $342.57 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.5% change.

View all Key Company Metrics for Trane Technologies here>>>

Shares of Trane Technologies have returned -1.5% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Trane Technologies (TT) Beats Q4 Earnings and Revenue Estimates

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Trane Technologies (TT) came out with quarterly earnings of $2.61 per share, beating the Zacks Consensus Estimate of $2.54 per share. This compares to earnings of $2.17 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.76%. A quarter ago, it was expected that this manufacturer would post earnings of $3.23 per share when it actually produced earnings of $3.37, delivering a surprise of 4.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Trane Technologies, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $4.87 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.18%. This compares to year-ago revenues of $4.42 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Trane Technologies shares have lost about 1.5% since the beginning of the year versus the S&P 500's gain of 2.7%.

What's Next for Trane Technologies?

While Trane Technologies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Trane Technologies: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.14 on $4.37 billion in revenues for the coming quarter and $12.81 on $21.04 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Air Conditioner and Heating is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Aaon (AAON), is yet to report results for the quarter ended December 2024.

This maker of air conditioning and heating equipment is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -3.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Aaon's revenues are expected to be $326.4 million, up 6.4% from the year-ago quarter.

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