Trane Technologies Stock Soared This Week: Here's Why
Shares of heating, ventilation, air-conditioning, and refrigeration (HVACR) company Trane Technologies (NYSE: TT) were up 15.2% this week as of noon Thursday, driven by excellent third-quarter earnings. Moreover, management raised its full-year guidance for organic revenue growth to a range of 8% to 9% from 8% previously, and full-year guidance for earnings per share (EPS) was lifted to $9 from a range of $8.80 to $8.90.
The guidance hike and strength of the company's orders caught the market by surprise, as commercial HVACR demand is seen as coming under pressure due to rising interest rates. Moreover, the ongoing weakness in consumer spending and natural retraction from the spending boom on home improvement were also seen as further pressuring Trane's residential HVAC orders.
However, after two consecutive quarters of year-over-year declines in organic bookings growth in the Americas and the total company, Trane reported 7% bookings growth in the former and 8% in the latter.
Source Fool.com
