Yahoo Finance Carlisle (CSL) Q4 Earnings & Sales Top Estimates, Rise Y/Y
Carlisle Companies Incorporated CSL reported impressive fourth-quarter 2022 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate.
Carlisle’s adjusted earnings were $3.92 per share, beating the consensus estimate of $3.86 by 1.6%. Our estimate for fourth-quarter adjusted earnings was $3.93. The bottom line increased 34.2% on a year-over-year basis, supported by higher sales.
Inside the Headlines
In the reported quarter, Carlisle’s revenues were $1,455 million, up 5.7% year over year. This increase was attributable to a 6.6% rise in organic revenues and a 0.2% benefit from acquired assets, partially offset by an adverse impact of 1.1% from unfavorable changes in foreign exchange rates.
The top line surpassed the Zacks Consensus Estimate of $1,448 million by 1.3%. Our estimate for net sales in the reported quarter was $1,456.6 million.
CSL reports results under four segments, namely Carlisle Construction Materials ("CCM"), Carlisle Weatherproofing Technologies ("CWT"), Carlisle Interconnect Technologies ("CIT") and Carlisle Fluid Technologies ("CFT").
The quarterly segmental results are briefly discussed below.
Revenues from CCM totaled $800.4 million, increasing 2.2% year over year. The same represented 55% of the total revenues. Our estimate for segmental revenues was $837.3 million. Organic revenues grew 3% on the back of strong demand for U.S. commercial roofing and price realization. The results were partially offset by an adverse impact of 1% from unfavorable changes in foreign exchange rates.
CWT revenues, representing 24% of the total revenues, were $349.5 million, up 5.5% year over year. Our estimate for segmental revenues was $315.5 million. The increase was driven by 5.5% growth in organic revenues on account of retail strength and positive pricing. Acquired assets benefited the results by 0.8%. However, forex headwinds adversely impacted sales by 0.8%.
CIT revenues, accounting for 15.4% of the total revenues, were $224.1 million, up 21.5% year over year. Our estimate for segmental revenues was $220.2 million. Organic revenues grew 21.9%, owing to the robust aerospace and medical end markets. However, forex headwinds adversely impacted sales by 0.4%.
CFT revenues, reflecting 5.6% of total revenues, were $80.6 million, up 4.3% year over year. Our estimate for segmental revenues was $83.7 million. Organic revenues increased 11.3% on solid price realization and higher volumes. The results were partially offset by an adverse impact of 7% from unfavorable changes in foreign exchange rates.
Carlisle Companies Incorporated Price, Consensus and EPS Surprise
Carlisle Companies Incorporated price-consensus-eps-surprise-chart | Carlisle Companies Incorporated Quote
Operating Margin Details
In the reported quarter, Carlisle’s cost of sales increased 2.7% to $1,012.4 million. It represented 69.6% of net sales compared with 71.6% a year ago.
Selling and administrative expenses decreased 2.4% to $188.9 million. The same represented 13% of net sales compared with 14.1% in the year-ago quarter. Research and development expenses totaled $12.8 million, down 0.8%.
Operating income was $239.6 million, up from $182.5 million year over year, while the margin grew 320 basis points to 16.5%.
Balance Sheet and Cash Flow
While exiting the fourth quarter, Carlisle had cash and cash equivalents of $400 million compared with $324.4 million at the end of fourth-quarter 2021. Long-term debt (including the current portion) was $2,583.3 million, up from $2,927.4 million at the end of fourth-quarter 2021.
In 2022, Carlisle generated net cash of $1000.9 million from operating activities compared with $421.7 million in the year-ago period.
In the same period, Carlisle rewarded its shareholders with a dividend payout of $134.4 million, increasing 19.5% year over year. The amount spent on share buyback totaled $400 million, down 26.7%.
Outlook
In 2023, Carlisle expects revenue growth in the low-single-digit range from the year-ago reported figure. For the CCM segment, revenues are anticipated to grow in the low-single digits, driven by strength across the re-roofing end markets, favorable pricing measures and robust demand for energy-efficient building products. CWT segment revenues are expected to decline in the low-double digits due to the weakening residential market.
Revenues from the CIT segment are expected to increase in the high-single digits, driven by increasing backlogs and growing demand in the Commercial Aerospace and Medical end markets. The CFT segment is anticipated to grow in the high-single digits on the back of rising backlog, product introductions and price discipline.
The company expects the adjusted EBITDA margin for CSL to increase 100 basis points year over year.
Zacks Rank & Stocks to Consider
CSL currently carries a Zacks Rank #4 (Sell). Some better-ranked companies are discussed below:
Allegion plc ALLE presently sports a Zacks Rank #1 (Strong Buy). ALLE’s earnings surprise in the last four quarters was 8.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Allegion’s earnings estimates have been unchanged for 2022. The stock has gained 21.3% in the past six months.
Applied Industrial Technologies, Inc. AIT presently has a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 20.1%, on average.
AIT’s earnings estimates have increased 10.9% for fiscal 2023 (ending June 2023) in the past 60 days. Shares of Applied Industrial have risen 41.2% in the past six months.
Valmont Industries, Inc. VMI presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 12.5%, on average.
In the past 60 days, Valmont’s earnings estimates have increased by a penny. The stock has rallied 17.6% in the past six months.
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Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
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