Trane Technologies Plc TT The results for the first quarter of 2023 have been better than expected.
Adjusted EPS of $1.41 is 6% above Zacks consensus estimates and 7.6% above our estimates. The bottom line grew 25.9% year over year.
Revenue of $3.7 billion beat the consensus mark by 0.8% and our estimate by 1.1%. The top line grew 9.3% year over year on a reported basis and 9% organically. Bookings decreased 1% year-over-year on a reported basis as well as organically.
Shares of Trance are up 28.8% against a fall of 28% over the past year Industry It is related to this.
Revenue & Bookings
Americas segment revenue of $2.9 billion grew 9% year over year on a reported basis and grew 8% organically. Bookings were down 4% as well as $3.3 billion on a reported basis.
Europe, Middle East and Africa segment revenue came in at $510.5 million, up 16% year-over-year on a reported basis and 15% organically. Bookings grew 10% year over year to $591.7 million on a reported basis as well as organically.
Asia Pacific segment revenue grew 5% year over year and 8% on an organic basis to $294.3 million on a reported basis. Bookings of $390.1 million grew 11% on a reported basis and 13% organic.
margin performance
Adjusted EBITDA came in at $542 million, up 17% year over year. Adjusted EBITDA margin improved by 100 basis points (bps) to 14.8%. Adjusted operating income of $472 million increased 23% year over year, with adjusted operating margin improving 140 bps to 12.9%.
Key Balance Sheet and Cash Flow Figures
Tran ended the quarter with a cash balance of $693 million compared to $1.2 billion in the previous quarter. Loan balances were $4.8 billion, flat compared to the prior quarter. This generated $17 million of cash from operating activities and $52 million of free cash outflow in the quarter.
Trance Technologies plc Price, Consensus and EPS Surprises
Trane Technologies plc price consensus eps surprise charts , Trane Technologies Plc Quote
raised 2023 guidance
The company currently expects revenue to grow by 9-10% on a reported basis, compared to a previous expectation of 7-9% growth. It now expects revenue growth on an organic basis to be 7-8%, compared to the earlier expectation of 6-8% growth.
Adjusted EPS is expected to be between $8.3 and $8.5, compared to a previous expectation of $8.2 to $8.5. The midpoint of the revised guided range ($8.4) is above the current Zacks consensus estimate of $8.33.
Tran currently holds a Zacks Rank #3 (Hold).
you can see Full list of today’s Zacks #1 Ranked (Strong Buy) stocks here,
Snapshot of recent earnings of some service providers
omnicom OMC The results for the first quarter of 2023 have been better than expected.
OMC’s earnings per share of $1.56 beat the Zacks Consensus Estimate by 13% and our estimate of 11.4%. EPS grew by 12.2% year-on-year. Total revenue of $3.4 billion was 2.3% above the consensus estimate and 1.4% above our estimate. The top line grew 1% year over year.
Equifax efx The results for the first quarter of 2023 have been better than expected.
EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but a 35.6% decline from the year-ago figure. Total revenue of $1.3 billion was 1.5% above consensus estimates, but decreased 4.5% year over year.
manpower group Man Reported lower than expected results for the first quarter of 2023.
MAN’s adjusted earnings per share of $1.61 was 0.6% below the consensus mark but matched our estimates. Revenue of $4.8 billion missed the consensus mark by 1.3% and our estimates by a narrow margin. The top line decreased 7.6% year over year.
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