S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com - RBC Capital has lowered its price target on Carrier Global (NYSE:CARR) to $87.00 from $89.00 while maintaining an Outperform rating on the stock. The company, currently valued at $59.1 billion, has seen its shares decline nearly 10% over the past week, though InvestingPro data shows it remains a prominent player in the Building Products industry.
The adjustment follows Carrier’s latest earnings report, which showed a modest 2 cent per share beat and 2% operating beat compared to RBC’s estimates. With revenue of $22.28 billion in the last twelve months and a healthy gross profit margin of 26.8%, the company has reaffirmed its full-year 2025 guidance.
RBC noted that Carrier’s third-quarter guidance disappointed, with implied earnings of 80-81 cents per share coming in 13% below consensus expectations. This shortfall was attributed primarily to lower residential Americas volume following a pre-buy destocking period.
Despite the guidance concerns, RBC highlighted several positive developments, including early improvements in German heat pump markets and 45% growth in Americas Commercial HVAC, with data center business growing 300%, albeit from a low base.
RBC maintained its bullish thesis on Carrier, citing Viessmann synergies, stable market share, commercial HVAC growth potential, data center traction, and double-digit aftermarket growth as factors supporting the company’s outlook heading into 2026. InvestingPro subscribers can access 15+ additional investment tips and a comprehensive Pro Research Report, offering deeper insights into Carrier’s valuation and growth prospects.
In other recent news, Carrier Global Corporation reported its second-quarter 2025 earnings, exceeding analysts’ expectations with an adjusted earnings per share (EPS) of $0.92 compared to the forecast of $0.91. Revenue for the quarter was in line with projections, reaching $6.1 billion, which indicates steady performance despite challenging market conditions. Additionally, Carrier Global has updated its segment reporting structure as outlined in a recent SEC filing. The company has recast certain financial amounts from its 2024 Annual Report to align with its revised reportable segments. These segments are now categorized as Climate Solutions Americas, Climate Solutions Europe, Climate Solutions Asia Pacific Middle East & Africa, and Climate Solutions Transportation. This change reflects Carrier’s portfolio transformation and aims to better represent its business strategy. The updated segment structure will be used for resource allocation and performance assessment starting in fiscal year 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.