TT Earnings Prediction
The chart below shows how TT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TT sees a -4.79% change in stock price 10 days leading up to the earnings, and a +3.40% change 10 days following the report. On the earnings day itself, the stock moves by +2.74%. This data can give you a slight idea of what to expect for the next quarter's release.
TT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.44B
11.43%
2.52%
Gross Margin
36.29%
6.86%
-0.49%
Operating Margin
18.80%
5.74%
-3.59%
Net Margin
14.46%
10.55%
0.07%
EPS
3.39
24.63%
2.73%
No Data Available
TT Earnings Analysis
Trane Technologies plc Corporation (TT.N) Earnings Conference Call
Positive
Strong Organic Revenue Growth: 11% organic revenue growth in Q3 2024, demonstrating strong demand and effective execution.
EBITDA Margin Improvement: Adjusted EBITDA margin expanded by 120 basis points, reflecting improved operational efficiency.
Adjusted EPS Growth: Adjusted EPS grew by 21%, indicating strong profitability and effective cost management.
Organic Bookings Growth: Enterprise organic bookings reached $5.2 billion, up 5% in the quarter and 13% on a two-year stack, showcasing robust customer demand.
Backlog Growth Indicator: Backlog increased to $7.2 billion, up from $6.9 billion at year-end 2023, indicating strong future revenue visibility.
Negative
Asia Pacific Volume Decline: 1. Decline in Asia Pacific Volumes: The Asia Pacific segment experienced a significant volume decline of approximately 22 points, indicating a substantial drop in demand in that region.
China HVAC Revenue Decline: 2. Weak Performance in China: The China commercial HVAC business saw a revenue decline due to deteriorating non-residential markets, with bookings and revenues negatively impacted, reflecting a challenging environment.
Transport Business Challenges: 3. Transport Business Underperformance: The Americas transport business is expected to be down mid-teens in 2024, indicating ongoing struggles in that segment despite efforts to position for future growth.
Credit Policy Impact: 4. Increased Credit Policies in China: The tightening of credit policies in China, particularly around downpayments and progress payments, has led to a significant drop in order fulfillment, impacting revenue.
Profitability Impact in China: 5. High Decremental Margins: The company reported high decremental margins in China, suggesting that the revenue decline is significantly affecting profitability in that region.
TT FAQs
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TT Earning Call Sentiment
Trane Technologies plc (TT) Q3 2024 Earnings Call Transcript
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TT.N
-8.29%Positive
The earnings call highlights strong financial performance with record bookings, revenue growth, and increased guidance for both revenue and EPS. Positive developments include significant growth in commercial HVAC and a robust backlog, indicating strong demand. Despite challenges in China and potential supply chain issues, the company's strategic focus and capital allocation (dividends and share repurchases) are favorable. The Q&A section provides additional confidence in data center growth and service business resilience. Overall, the positive financial metrics and raised guidance suggest a likely stock price increase in the short term.