Carlisle Companies Third Quarter 2024 Earnings: Misses Expectations

Carlisle Companies Incorporated (NYSE:CSL) reported its third quarter 2024 financial results, which fell short of analyst expectations. The company's revenue and earnings per share (EPS) missed estimates by 3.3% and 3.7% respectively. Despite the earnings miss, Carlisle Companies' shares are down 11% from a week ago, reflecting investor concerns about the company's performance.


Carlisle Companies' segments, Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT), contributed to the overall earnings miss. CCM, which grew revenue by 9% and expanded its adjusted EBITDA margin by 110 bps to a record 32.8%, drove strong performance. However, CWT's 3% year-over-year sales decline, due to challenges in residential markets and a higher interest rate environment, negatively impacted the company's overall earnings.


Residential market headwinds and weather-related events significantly impacted Carlisle Companies' earnings. The continued decline in residential markets, along with weather-related disruptions and port strikes, negatively affected shipping days, contractor days on the roof, and manufacturing output. These factors contributed to the earnings miss and the company's shares falling 11% from a week ago.

Carlisle Companies' acquisition strategy, particularly the Plasti-Fab deal, influenced its third-quarter results. The acquisition of Plasti-Fab, a leading manufacturer in the North American expanded polystyrene insulation market, is expected to generate approximately $14 million in annual cost synergies and be accretive to the company's adjusted EPS by approximately $0.30 in 2025. This strategic move aligns with Carlisle Companies' Vision 2030 strategy to enhance its "best-in-class" building envelope product portfolio.

Carlisle Companies' balance sheet and capital deployment strategies, such as share repurchases and dividend increases, have positively impacted its earnings and overall performance. The company repurchased 1.1 million shares for $466 million and increased its quarterly dividend by 18%, marking the 48th consecutive annual dividend increase. These capital deployment strategies demonstrate the company's commitment to generating superior shareholder returns.

In conclusion, Carlisle Companies' third quarter 2024 earnings missed expectations due to the performance of its segments, residential market headwinds, and weather-related events. Despite the earnings miss, the company's acquisition strategy and capital deployment initiatives have positively impacted its performance. Investors should closely monitor Carlisle Companies' progress towards its Vision 2030 goals and its ability to navigate the challenges in the residential market.