Street Calls of the Week
Investing.com -- Carrier Global (NYSE:CARR) stock fell as much as 5% before paring losses to trade down 3% after CEO David L. Gitlin warned of lower-than-expected third-quarter volume at a Morgan Stanley conference.
Gitlin revealed that Carrier now anticipates third-quarter volume to be lower than what the company had previously forecast during its second-quarter results. He cited Trade Association data showing a nearly 30% reduction in industry volumes in July, with Carrier’s own volumes declining by a similar amount.
The CEO projected that industry volumes in August and September would continue to be down by approximately 30%, "if not worse." Gitlin attributed the slowdown to a combination of high interest rates and pressure on consumers, which are increasingly weighing on consumer spending, including new and existing home sales, leading to delayed residential HVAC (heating, ventilation, and air conditioning) activity.
The negative outlook from Carrier appeared to impact other companies in the sector as well. Shares of Lennox (NYSE:LII) fell as much as 3%, while Watsco (NYSE:WSO) extended its decline to 3.75% following Gitlin’s comments.
Carrier Global is a leading provider of HVAC, refrigeration, and fire and security solutions for residential and commercial applications.
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