More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Financial Performance - Organic revenues increased by 11% in Q3 2024[8] - Adjusted EBITDA margins increased by 120 basis points in Q3 2024[8] - Adjusted EPS increased by 21% in Q3 2024[8] - The company is raising its 2024 adjusted EPS guidance to approximately $1110, representing an increase of approximately 23%[8] - The company expects organic revenue growth of approximately 11% in 2024, an increase from the previous guidance of approximately 10%[8] Bookings and Backlog - Q3 2024 bookings reached $52 billion, a 5% increase[9] - The company's backlog stands at $72 billion, an increase of approximately $300 million from the end of 2023[8] - Approximately $41 billion of the backlog is for 2025 and beyond[8] Segment Performance - Americas revenue increased by 15%[25] - EMEA revenue increased by 8%[25] - Asia Pacific revenue decreased by 21%[25] Capital Allocation - The company expects to deploy approximately $25 billion in capital in 2024[52] - Year-to-date share repurchases totaled approximately $10 billion[52] - Dividends paid year-to-date totaled $569 million, with a Q4 dividend declared at approximately $190 million[51]

Core Insights - Trane Technologies reported revenue of $5.44 billion for the quarter ended September 2024, reflecting an 11.4% increase year-over-year and a 2.44% surprise over the Zacks Consensus Estimate of $5.31 billion [1] - The company's EPS for the quarter was $3.37, up from $2.79 in the same quarter last year, surpassing the consensus estimate of $3.23 by 4.33% [1] Revenue Performance - Total bookings for Trane Technologies were $5.21 billion, which fell short of the average estimate of $5.52 billion from two analysts [3] - Revenue from the Americas reached $4.47 billion, exceeding the average estimate of $4.30 billion from five analysts, representing a year-over-year increase of 15.1% [3] - Revenue from EMEA was $667.80 million, slightly above the estimated $654.92 million, marking an 8% increase compared to the previous year [3] - Revenue from the Asia Pacific region was $298.50 million, significantly below the average estimate of $360.03 million, indicating a year-over-year decline of 20.7% [3] Stock Performance - Over the past month, shares of Trane Technologies have returned +1%, compared to a +1.8% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [4]

Trane Technologies (TT) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.23 per share. This compares to earnings of $2.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.33%. A quarter ago, it was expected that this manufacturer would post earnings of $3.08 per share when it actually produced earnings of $3.30, delivering a surprise of 7.14%. Over the last four quarters, the co ...

Revenue Performance - Reported revenues of $5.4 billion, up 11% year-over-year, with organic revenues also up 11%[1] - Americas segment bookings increased by 8% to $4.3 billion, with revenues up 15% to $4.5 billion[6][7] - EMEA segment bookings grew by 9% to $637 million, with revenues up 8% to $667.8 million[8][10] - Asia Pacific segment bookings declined by 30% to $279 million, with revenues down 21% to $298.5 million[12] - Net revenues for the quarter ended September 30, 2024, were $5,441.2 million, compared to $4,882.9 million for the same period in 2023[36] - Net revenues for the quarter ended September 30, 2024, were $5,441.2 million, with no adjustments, resulting in adjusted net revenues of $5,441.2 million[37] - Net revenues for the nine months ended September 30, 2024, were $14,964.2 million, with no adjustments, resulting in adjusted net revenues of $14,964.2 million[37] - Americas net revenues increased to $4,474.9 million in Q3 2024, up from $3,888.0 million in Q3 2023, representing a 15.1% growth[39] - Total company net revenues grew to $5,441.2 million in Q3 2024, compared to $4,882.9 million in Q3 2023, a 11.4% increase[39] Profitability Metrics - GAAP operating margin increased by 110 basis points to 18.8%, while adjusted operating margin rose by 90 basis points to 18.9%[1][3] - Adjusted EBITDA margin improved by 120 basis points to 20.7%[1][3] - GAAP continuing EPS of $3.43, with adjusted continuing EPS of $3.37, up 21% year-over-year[1][2] - Operating income for the quarter ended September 30, 2024, was $1,024.6 million, compared to $864.2 million for the same period in 2023[36] - Operating income for the quarter ended September 30, 2024, was $1,024.6 million, with an operating margin of 18.8%, and adjusted operating income of $1,025.8 million with a margin of 18.9%[37] - Earnings from continuing operations before income taxes for the quarter ended September 30, 2024, were $967.9 million, with adjustments of $1.2 million, resulting in adjusted earnings of $969.1 million[37] - Tax rate for the quarter ended September 30, 2024, was 18.7%, and adjusted tax rate was 20.1%[37] - Earnings from continuing operations attributable to Trane Technologies plc for the quarter ended September 30, 2024, were $780.9 million, with adjustments of $(12.3) million, resulting in adjusted earnings of $768.6 million[37] - Diluted earnings per common share from continuing operations for the quarter ended September 30, 2024, were $3.43, with adjustments of $(0.06), resulting in adjusted diluted earnings per share of $3.37[37] - Operating income for the nine months ended September 30, 2024, was $2,692.5 million, with an operating margin of 18.0%, and adjusted operating income of $2,692.4 million with a margin of 18.0%[37] - Earnings from continuing operations before income taxes for the nine months ended September 30, 2024, were $2,491.2 million, with adjustments of $(0.1) million, resulting in adjusted earnings of $2,491.1 million[37] - Tax rate for the nine months ended September 30, 2024, was 19.8%, and adjusted tax rate was 20.4%[37] - Adjusted EBITDA for the total company rose to $1,127.1 million in Q3 2024, up from $954.4 million in Q3 2023, an 18.1% increase[39] - Net earnings attributable to Trane Technologies plc increased to $772.0 million in Q3 2024, compared to $626.3 million in Q3 2023, a 23.3% growth[41] Cash Flow and Liquidity - Cash flow from continuing operating activities year-to-date was $2.3 billion, with free cash flow of $2 billion[14] - Cash and cash equivalents at the end of Q3 2024 stood at $1,470.0 million, up from $1,095.3 million at the end of 2023[43] - Net cash provided by operating activities increased to $2,245.7 million in the first nine months of 2024, compared to $1,454.8 million in the same period of 2023[44] - Capital expenditures for the first nine months of 2024 were $245.0 million, up from $217.2 million in the same period of 2023[44] - Repurchase of ordinary shares totaled $926.1 million in the first nine months of 2024, compared to $459.8 million in the same period of 2023[44] - Net cash flow provided by continuing operating activities for the nine months ended September 30, 2024, was $2,272.2 million, up from $1,482.6 million in the same period in 2023[46] - Free cash flow for the nine months ended September 30, 2024, was $2,037.5 million, compared to $1,288.4 million in the same period in 2023[46] - Capital expenditures, net for the nine months ended September 30, 2024, were $245.0 million, up from $217.2 million in the same period in 2023[46] - Cash payments for restructuring were $7.2 million in the nine months ended September 30, 2024, compared to $8.8 million in the same period in 2023[46] Balance Sheet and Financial Position - Total current assets increased to $8,099.7 million at the end of Q3 2024, up from $6,869.9 million at the end of 2023[43] - Long-term debt rose to $4,317.1 million at the end of Q3 2024, compared to $3,977.9 million at the end of 2023[42] - Net Receivables increased to $3,393.4 million as of September 30, 2024, compared to $3,142.5 million in September 2023 and $2,956.8 million in December 2023[45] - Days Sales Outstanding improved to 56.9 days in September 2024 from 58.7 days in September 2023 and 61.0 days in December 2023[45] - Net Inventory decreased to $2,033.4 million in September 2024 from $2,191.8 million in September 2023 and $2,152.1 million in December 2023[45] - Inventory Turns increased to 6.8 in September 2024 from 5.9 in September 2023 and 5.5 in December 2023[45] - Accounts Payable increased to $2,194.8 million in September 2024 from $2,093.3 million in September 2023 and $2,025.2 million in December 2023[45] - Days Payable Outstanding improved to 57.8 days in September 2024 from 59.2 days in September 2023 and 62.6 days in December 2023[45] Guidance and Definitions - The company raised full-year 2024 revenue guidance to approximately 11% growth and adjusted continuing EPS guidance to $11.10[15] - Adjusted continuing EPS for 2024 is defined as GAAP continuing EPS adjusted for restructuring costs, contingent consideration, merger and acquisition related costs, legacy legal liability, and a U.S. discrete tax benefit[24] - Adjusted EBITDA for 2024 is defined as adjusted operating income excluding depreciation and amortization expense and including other income/(expense), net[25] - Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues[26] - Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for a U.S. discrete tax benefit and the net tax effect of adjustments for restructuring costs, contingent consideration, merger and acquisition related costs, and legacy legal liability divided by adjusted net earnings[27] - Free cash flow for 2024 is defined as net cash provided by continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition related costs[28] - Operating leverage is defined as the ratio of the change in adjusted operating income for the current period less the prior period, divided by the change in net revenues for the current period less the prior period[29] - Organic revenue is defined as GAAP net revenues adjusted to eliminate currency fluctuations and the impact of acquisitions[29] Bookings and Segment Performance - Strong bookings of $5.2 billion, up 5% year-over-year[1][3] - Americas segment bookings increased by 8% to $4.3 billion, with revenues up 15% to $4.5 billion[6][7] - EMEA segment bookings grew by 9% to $637 million, with revenues up 8% to $667.8 million[8][10] - Asia Pacific segment bookings declined by 30% to $279 million, with revenues down 21% to $298.5 million[12]

Company Overview - Trane Technologies, founded in 1885 and headquartered in Swords, Ireland, specializes in designing, manufacturing, selling, and servicing climate control products for heating, ventilation, air conditioning, and transport solutions [7] - The company generates approximately 72% of its revenues from the United States, with the remainder coming from over 100 other countries, ensuring no single customer accounts for more than 10% of revenues [7] Investment Ratings - Trane Technologies holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating a favorable investment outlook [7] - The company has a Momentum Style Score of B, with shares increasing by 1.6% over the past four weeks, making it attractive for momentum investors [7] Earnings Estimates - For fiscal 2024, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.07 to $10.89 per share [8] - Trane Technologies boasts an average earnings surprise of 8.1%, reflecting its strong performance relative to expectations [8]

In its upcoming report, Trane Technologies (TT) is predicted by Wall Street analysts to post quarterly earnings of $3.23 per share, reflecting an increase of 15.8% compared to the same period last year. Revenues are forecasted to be $5.31 billion, representing a year-over-year increase of 8.8%. The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ini ...

Core Viewpoint - Trane Technologies plc (TT) has shown exceptional performance over the past year and is expected to maintain this momentum, making it a compelling addition to investment portfolios [1]. Performance Metrics - The stock has returned 94.6% over the past year, outperforming the industry growth of 57.4% and the Zacks S&P 500 composite rise of 32.4% [2]. - TT currently holds a Zacks Rank of 2 (Buy), indicating strong investment potential [2]. Earnings Estimates - In the last 60 days, three earnings estimates for 2024 have been revised upward, with no downward revisions, reflecting analysts' confidence [3]. - The Zacks Consensus Estimate for 2024 earnings has increased by 1% [3]. - TT has consistently outperformed earnings estimates, achieving an average earnings surprise of 8.1% over the last four quarters [3]. Revenue and Earnings Growth - The Zacks Consensus Estimate for 2024 revenues is projected at $19.6 billion, representing a year-over-year growth of 10.6% [4]. - The estimated earnings for 2024 are $10.9 per share, indicating a year-over-year increase of 20.4% [4]. Sustainability Initiatives - The company is committed to reducing embodied carbon by 40% by 2030, showcasing its leadership in sustainability and climate innovation [5]. - Trane Technologies is focusing on sourcing low-carbon materials and promoting circular design principles, reinforcing its sustainability commitments [5]. Shareholder Returns - Trane Technologies has a long history of paying dividends, with $683.7 million paid in 2023, an increase from $620.2 million in 2022 and $561.1 million in 2021 [6]. - A quarterly dividend of 84 cents per share has been declared for Q4 2024, payable on December 31, 2024 [6]. Backlog and Future Growth - In Q2 2024, TT reported a backlog of $7.5 billion, which is a 19% organic increase from the previous quarter, supporting growth through 2024 and 2025 [7].

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Company Performance - Trane Technologies' shares have increased by 14.6% over the past month and reached a new 52-week high of $398, with a year-to-date gain of 62.6% compared to 14.6% for the Zacks Business Services sector and 30.6% for the Zacks Technology Services industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $3.3 against a consensus estimate of $3.08 in its last earnings report on July 31, 2024 [2] Financial Projections - For the current fiscal year, Trane Technologies is projected to achieve earnings of $10.88 per share on revenues of $19.55 billion, reflecting a 20.35% increase in EPS and a 10.61% increase in revenues [3] - The next fiscal year is expected to see earnings of $12.30 per share on revenues of $20.95 billion, indicating year-over-year changes of 13.02% in EPS and 7.13% in revenues [3] Valuation Metrics - The stock trades at a valuation of 36.5X current fiscal year EPS estimates, which is higher than the peer industry average of 24.3X, and at 37.1X on a trailing cash flow basis compared to the peer group's average of 12.5X [7] - Trane Technologies has a PEG ratio of 2.73, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank - Trane Technologies holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which is favorable for investors [8] - The company meets the criteria for selection based on Zacks Rank and Style Scores, suggesting potential for further share price appreciation in the near term [9] Industry Comparison - The Technology Services industry is positioned in the top 33% of all industries, indicating favorable conditions for both Trane Technologies and its peer, Cellebrite DI Ltd. [12] - Cellebrite DI Ltd. has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $0.41 on revenues of $395.67 million for the current fiscal year [10][11]