Trane Technologies (TT) Q4 Earnings Beat Estimates, Up Y/Y

Trane Technologies (NYSE:TT) plc TT reported better-than-expected fourth-quarter 2021 results.

Adjusted EPS of $1.36 surpassed the Zacks Consensus Estimate by 3.8% and increased 32% year over year. Revenues of $3.6 billion topped the consensus mark by 1.1% and increased 12% year over year on a reported basis and 11% organically. Bookings were up 28% year over year on a reported basis and 27% organically, to $4.1 billion.

The company’s shares have gained 20.6% over the past year against 60% decline of the industry it belongs to.

Revenues and Bookings Up in all Segments

The Americas segment’s revenues of $2.7 billion increased 15% year over year on a reported basis and 14% on an organic basis. Bookings grew 33% on a reported basis and 31% organically, to $3.2 billion.

Europe, Middle East and Africa (EMEA) segment’s revenues came in at $482.8 million, up 4% year over year on a reported basis and 5% organically. Bookings were up 12% on a reported basis and 13% organically, to $510.3 million.

Revenues from the Asia Pacific segment were up 3% year over year on a reported basis and 4% on an organic basis, to $337 million. Bookings of $377.1 million increased 18% on a reported basis as well as organically.

Strong Margin Performance

Adjusted EBITDA came in at $525 million, up 14% year over year. Adjusted EBITDA margin improved 30 basis points (bps) to 14.7%. Adjusted operating income of $447 million increased 13% year over year with adjusted operating margin improving10 bps to 12.5%.

Key Balance Sheet and Cash Flow Figures

Trane ended the quarter with cash balance of $2.2 billion compared with $2.7 billion at the end of the previous quarter. Debt balance was $4.8 billion, flat with the previous quarter's figure.

The company generated $1.6 billion of cash from operating activities in 2021 while capital expenditures were $163 million. Free cash flow was $1.4 billion.

2022 Guidance

Adjusted EPS is expected to be between $6.95 to $7.15, up 14% to 17% year over year. The midpoint ($7.05) of the guided range is above the current Zacks Consensus Estimate of $7.

Trane currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Business Services Companies

Automatic Data Processing (NASDAQ:ADP) ADP reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Robert Half International RHI delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.

Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #2.

Rollins (NYSE:ROL) ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.

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