The Sell-Off in Carrier Stock Is a Buying Opportunity

The market reacted badly to heating, ventilation, and air conditioning (HVAC) company Carrier Global's (NYSE: CARR) recently released fourth-quarter earnings report. The market can be wrong, though. It's never great news when a company misses analyst earnings estimates, and it's even worse when it guides toward year-ahead earnings that disappoint compared to the analyst consensus. However, the details are important: The reasons behind these events are actually positives for the company, and investors should warm to them. Here's the lowdown.

In a nutshell, Carrier faced some higher-than-expected one-time item costs and made investments to fuel future growth in the fourth quarter. However, its sales were pretty much in line with management's previous guidance, and adjusted operating profit was actually slightly ahead of projections.

Office workers need appropriate air conditioning and ventilation. Image source: Getty Images.

Source Fool.com