Carrier Global Revises Revenue Forecast Amid Weakening Demand

Carrier Global Corporation (NYSE:CARR), a key player in the heating, ventilation, and air conditioning (HVAC) sector, has lowered its annual revenue forecast due to reduced consumer spending on non-essential items, including HVAC systems. This adjustment reflects the impact of ongoing inflation on household savings and the resulting reluctance to invest in energy-efficient products.

The company's financial outlook is also affected by a sluggish housing market, driven by rising mortgage rates and increasing home prices, which have led to decreased demand for Carrier products in North America.

In a recent update, Carrier projected its 2024 revenue to reach $22.5 billion, a significant drop from its previous estimate of $26 billion. Additionally, the company revised its adjusted earnings per share expectation to approximately $2.50, below the mid-point of the prior forecast range of $2.80 to $2.90.

Despite the revised forecast, Carrier reported an increase in third-quarter net income, rising to $447 million or 49 cents per share, compared to $357 million or 42 cents per share in the same period last year.

Following the announcement, Carrier's shares fell by over 7%, highlighting the challenges the company faces under current economic conditions. These conditions continue to influence consumer behavior and spending patterns.