Shares of Trane Technologies (TT 3.00%) rallied 12.2% on Wednesday after the heating, ventilation, and air conditioning giant announced strong quarterly results.
Trane's third-quarter 2023 revenue grew 11.7% year over year to $4.88 billion, translating to non-GAAP (adjusted) earnings of $2.79 per share (up 23% from $2.27 per share a year earlier). Analysts, on average, were only expecting earnings of $2.67 per share on revenue of $4.80 billion.
NYSE: TT
Key Data Points
On Trane's record bookings, global growth
Trane's bookings -- a key measure for future growth -- climbed a solid 10% year over year (8% excluding acquisitions), led by 14% organic bookings growth within the commercial HVAC business in the Americas segment. But Trane also achieved bookings growth worldwide, with organic bookings up 12% in both its Asia Pacific (APAC) and Europe, Middle East and Africa (EMEA) geographic segments.
"With bookings at an all-time high, we continue to see robust customer demand for our sustainable products and services," added Trane CEO Dave Regnery, "with particular strength across our commercial HVAC businesses globally."
What's next for Trane Technologies stock?
Looking ahead to the rest of the year, Trane now expects full-year 2023 revenue growth of 10% to 11% -- increased from previous guidance for 10% growth -- including organic growth of 8% to 9% (up from 8% previously). On the bottom line, Trane now anticipates adjusted earnings of $9 per share, raised from its old outlook for a per-share range of $8.80 to $8.90.
All told, there was little not to like from an investor's perspective in this beat-and-raise performance. With strong demand for its products in spite of today's uncertain macroeconomic environment, I see no reason Trane Technologies stock can't continue to climb from here.
