Trane Technologies (TT) Q4 Preview: Key Information Before Earnings Release

Trane Technologies Set to Announce Earnings

Trane Technologies (NYSE:TT), a leading HVAC provider, is scheduled to release its earnings report this Thursday before market open. Here’s an overview of what investors should be watching for.

Recent Performance Overview

In the previous quarter, Trane Technologies posted revenue of $5.74 billion, reflecting a 5.5% increase compared to the same period last year. Although the company exceeded analysts’ expectations for adjusted operating income, its revenue came in slightly below forecasts by 0.9%. Overall, the quarter was considered solid despite the minor revenue shortfall.

Upcoming Earnings Expectations

For the upcoming quarter, analysts predict Trane Technologies will generate $5.11 billion in revenue, representing a 4.8% year-over-year increase. This growth rate is slower than the 10.2% rise recorded in the corresponding quarter last year. Adjusted earnings per share are projected to reach $2.81.

Analyst Sentiment and Historical Trends

Most analysts have maintained their estimates over the past month, indicating stable expectations for the company’s performance. Notably, Trane Technologies has missed Wall Street’s revenue projections three times in the past two years.

Industry Peers and Market Context

Other companies in the building products sector have already released their fourth-quarter results, offering some insight into industry trends. AZZ reported a 5.5% year-over-year revenue increase, surpassing analyst forecasts by 1.8%, while Insteel achieved a 23.3% revenue jump but missed expectations by 1.3%. Following their reports, AZZ’s stock climbed 6.6%, and Insteel’s shares rose 1.9%.

Stock Performance and Analyst Targets

The building products sector has seen positive momentum, with average share prices rising 9.3% over the past month. In contrast, Trane Technologies’ stock has remained steady during this period. Heading into earnings, the consensus analyst price target for Trane Technologies stands at $478.27, compared to its current trading price of $392.80.

Should You Buy or Sell Trane Technologies?

Curious whether Trane Technologies is a good investment ahead of its earnings announcement?

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