Swords, Ireland-based Trane Technologies plc (TT) designs, manufactures, sells and services climate control products for heating, ventilation, air conditioning and transport solutions. Valued at $87.6 billion by market cap, Trane employs over 40,000 people, with operations spanning various countries across the Americas, Indo-Pacific and EMEA.

The HVAC giant is expected to announce its fourth-quarter results before the market opens on Thursday, Jan. 30. Ahead of the event, Trane is expected to report a non-GAAP profit of $2.53 per share, up 16.6% from $2.17 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line expectations in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 20.8% year-over-year to $3.37, exceeding analysts' estimates by 4.3%.

For the full fiscal 2024, Trane is expected to deliver an adjusted EPS of $11.15, up 23.3% from $9.04 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 14.3% year-over-year to $12.74 per share.

TT stock prices have soared 59.2% over the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 26.5% gains and the Industrial Select Sector SPDR Fund’s (XLI) 25% returns during the same time frame.

Boosted by a robust performance in the Americas' HVAC sales, Trane’s overall Q3 net revenues soared 11.4% year-over-year to $5.4 billion, outpacing analysts’ projections by 2.4%. The firm benefited from favorable pricing in the Americas, which bolstered margins and drove a notable 18.6% increase in operating income to over $1 billion.

Despite this strong performance, Trane's stock dipped by 3.9% after the release of its Q3 results on Oct. 30 as the company’s sales for the Indo-Pacific region dropped 20.7% year-over-year to $298.5 million. This downturn was primarily driven by a sluggish non-residential market and stringent credit policies impacting order fulfillments in China.

The consensus opinion on TT stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 20 analysts covering the stock, seven recommend “Strong Buy,” 12 suggest “Hold,” and one advises a “Strong Sell” rating. Its mean price target of $428.17 indicates a 10% upside potential from current price levels.