Latest news with #CARR
Yahoo
2 days ago
- Business
- Yahoo
Is Wall Street Bullish or Bearish on Carrier Global Stock?
With a market cap of $56.2 billion, Carrier Global Corporation (CARR) is a leading global provider of innovative heating, ventilation, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies. Headquartered in Florida, the company offers a broad portfolio of products, services, and digital solutions designed to enhance energy efficiency, safety, and sustainability in residential, commercial, and industrial applications worldwide. Shares of the company have struggled to keep up with the broader market over the past 52 weeks, rising 2.4%, while the broader S&P 500 Index ($SPX) has rallied 20.1%. Additionally, shares of Carrier Global are down 3.3% on a YTD basis, compared to the SPX's 8.6% rise. More News from Barchart 'It Will Be the Biggest Product Ever': Elon Musk Says Tesla's Optimus Robots Will Be Bigger Than Even Robotaxi Dear Archer Aviation Stock Fans, Mark Your Calendars for August 11 This Hidden-Gem AI Stock Has a Major Catalyst Coming on August 11 Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Focusing more closely, Carrier Global has also underperformed the Industrial Select Sector SPDR Fund's (XLI) 21.4% return over the past 52 weeks and 14.5% rise in 2025. On Jul. 29, Carrier Global posted its Q2 2025 earnings, and its shares tumbled 10.6%. It delivered $6.11 billion in net sales, reflecting a 3% increase year-over-year and 6% organic growth. Its adjusted EPS rose 26% to $0.92, and adjusted operating margin climbed 130 basis points to 19.1%. The company generated $649 million in operating cash flow and $568 million in free cash flow, For the fiscal year ending in December 2025, analysts expect CARR's EPS to grow nearly 18.4% year-over-year to $3.03. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters. Among the 23 analysts covering the stock, the consensus rating is a 'Moderate Buy.' That's based on 13 'Strong Buy' ratings, one 'Moderate Buy,' and nine 'Holds.' This configuration is more bearish than a month ago, with 14 'Strong Buy' ratings on the stock. On Aug. 8, Morgan Stanley (MS) analyst Chris Snyder maintained an 'Equal-Weight' rating on Carrier Global but lowered the price target from $78 to $75. The mean price target of $84.19 implies a premium of 27.5% from CARR's current price levels. Also, the Street-high target of $100 indicates a potential upside of 51.4% from the prevailing market prices. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
30-07-2025
- Business
- Yahoo
Carrier Global (CARR) Declines 10.6% on Earnings Drop
We recently published . Carrier Global Corporation (NYSE:CARR) is one of the worst-performing stocks on Tuesday. Carrier Global declined by 10.61 percent on Tuesday to close at $71.67 apiece as investors soured on the company's dismal earnings performance in the second quarter of the year. During the period, Carrier Global Corporation (NYSE:CARR) said net income attributable to shareholders fell by 75 percent to $591 million from $2.337 billion in the same period last year, while total net sales inched up by 3 percent to $6.113 billion from $5.934 billion in the same period last year. Copyright: alexmit / 123RF Stock Photo In the first six months of the year, net income attributable to shareholders declined by 61 percent to $1 billion from $2.6 billion year-on-year. Total net sales ended flat at $11.3 billion. Despite the figures, Carrier Global Corporation (NYSE:CARR) maintained its full-year guidance of around $23 billion in sales, adjusted operating margin of 16.5-17 percent, as well as adjusted earnings per share of $3 to $3.10, or a year-on-year growth of 17-21 percent. While we acknowledge the potential of CARR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
Tariff Deals Spark Unusual Options Trading in Carrier Global Corp Stock
Carrier Global Corp. (CARR) stock is up today on news that the Trump Administration has made several Asian trade and tariff deals. That has sparked unusual out-of-the-money (OTM) CARR put options trading, signaling investor interest in the stock. CARR is up over 5% at $80.58 in midday trading, but the unusual options trading implies it may have further to go. A closer look shows it could be worth at least 18% more at $95 per share. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Down 10% Since Warren Buffett's Retirement News, Should You Buy the Dip in Berkshire Hathaway Stock? MSCI, the Index Company, Forecasts Strong Free Cash Flow, Looks Undervalued Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Moreover, the unusual put option trading highlights a good way to play CARR stock - shorting long-dated out-of-the-money (OTM) puts to set a lower buy-in price and generate income in the process. The unusual options trading in CARR puts can be seen in Barchart's Unusual Stock Options Trading Report today. It shows that over 15,000 put option contracts traded at the $75.00 put option strike price for expiry at the end of 2025 (149 days from now on Dec. 19, 2025). The premium received by short sellers of these puts is about $3.10 in the midpoint, or a 4.133% short-put yield (i.e., $3.10/$75.00) over 5 months. That works out to about 0.83% per month for 5 months. More importantly, it allows a potential investor in CARR stock to set a lower breakeven point, i.e., if CARR falls to $75.00 anytime during this period. For example, $75.00 - $3.10 = $71.90, which is almost 12% below today's price. That makes shorting these puts a great way to potentially invest in CARR stock. Its value could be significantly higher by then. Let's see why. Trade Deals and Growth Prospects In April, CARR took a hit as the Trump Administration began its aggressive campaign to raise tariff rates on American trading partners. Carrier Global Corp. manufactures refrigerated boxes and related transportation items, which are heavily used in global trade for HVAC and refrigerated applications. However, yesterday the Administration announced several Asian trade deals. It established a 15% tariff rate with Japan, securing one of America's largest trading partners in a strong trade agreement. According to reports, another deal with the Philippines has also been finalized. This augurs well for the possibility of further trade deals. After all, the Trump Administration's August 1 deadline to set deals seems to be hard and fast. As a result, things could be looking up for Carrier Global Corp. Moreover, last quarter, it said in its Q1 earnings release that it had fully mitigated the effect of tariffs on its business. The market may have been a little skeptical about this. In fact, the company reaffirmed its guidance for the year, despite sales having fallen 4% YoY in Q1. It guided that it expects to see sales of $23 billion (up from a prior estimate of $22.5 to $23 billion). This is higher than the $22.4 billion in sales last year. The recent news may imply that sales guidance could rise. That may be what is pushing CARR stock higher. Strong Free Cash Flow and FCF Margins On top of this, Carrier Global reaffirmed that it expects free cash flow (FCF) to range between $2.4 and $2.6 billion this year. That implies its FCF margin (FCF/sales) could rise. For example, given management's guidance on sales, we can project at least a 10.9% FCF margin over the next 12 months (NTM): $2.5b FCF /$23 billion sales = 10.9% FCF margin Given that analysts foresee sales ranging between $23 billion and $24.3 billion, or $23.65 billion NTM: $23.65 billion NTM sales x 10.9% FCF margin = $2.58 billion NTM FCF That is significantly higher than the $526 million in FCF it made over the last 12 months, according to Stock Analysis, and the $2.5 billion midpoint range of its guidance for 2025. This could push CARR stock higher. Target Prices for CARR Stock FCF Yield Target Price. For example, let's assume that the market will give Carrier Global stock at least a 3.0% FCF yield if Carr Global makes $2.5 billion FCF this year and $2.58 billion over the next 12 months: $2.58 billion FCF / 0.03 = $86 billion market value That works out to an increase of up to 26% over today's market cap of $68.37 billion, according to Yahoo! Finance: $86b /$68.37b mkt cap = 1.258 -1 = +25.8% upside In other words, CARR stock could be worth 25.8% more over the next 12 months: $80.58 price today x 1.258 = $101.37 target price Dividend Yield Target Price. Another way to value CARR stock is to use its historical dividend yield (and assume that the stock reverts to that mean yield). For example, Yahoo! Finance reports that its 5-year yield has averaged 1.12%, Seeking Alpha says it's been 1.11% and Morningstar reports 0.91%. So, the survey's historical mean is 1.04% over the past five years. Given that the company pays out an annual dividend per share (DPS) of 90 cents, we can forecast where the stock's price target: $0.90 / 0.0104 = $86.54 target price Upside: +7.4% However, it seems likely that CARR will raise its DPS next year. Assuming it raises the quarterly 22.5 cents DPS by 5%, here is the NTM DPS forecast: $0.225 + $0.225 + $0.23625 +$0.23625 = $0.9225 NTM DPS Therefore, the NTM price target is: $0.9225 / 0.0104 = $88.70 price target Upside = +10% Summary Price Target. As a result, using a FCF yield method, the price target is $101.37, and using a dividend yield metric, it's $88.70. That works out to an average price target of $95.04 per share, or +18% over today's price. This is higher than analysts' price targets, as the average of 19 analysts surveyed by shows $84.10 per share. However, this could change next week when the company releases its Q2 earnings results on July 29. The bottom line is that investors are getting bullish on CARR stock, given the recent trade deals and the company's outlook. Moreover, its price targets could rise if Carrier Global maintains or increases its sales and free cash flow (FCF) guidance in its Q2 results release. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
24-07-2025
- Automotive
- Business Wire
MotorK Drives Toward Profitability, Demonstrating Resilience Despite Market Challenges in H1 25
LONDON--(BUSINESS WIRE)--Regulatory News: MotorK PLC (AMS: MTRK) ("MotorK", the "Group" or the "Company"), a leading SaaS provider to the automotive retail industry in the EMEA region, today announced its financial results for the first six months of the year ended on 30 June 2025 ('H1 25'). H1 25 Financial Highlights: Committed Annual Recurring Revenue (CARR 1 ): €35.8 million in H1 25. New additions to CARR were at double digits (€3.9 million) compared to FY 24, offset by churn mostly related to phase-out of non-core retail customers, in line with the Company's strategic focus on high-value segments. €35.8 million in H1 25. New additions to CARR were at double digits (€3.9 million) compared to FY 24, offset by churn mostly related to phase-out of non-core retail customers, in line with the Company's strategic focus on high-value segments. Recurring Billings 2 : €15.8 million in the first six months of 2025, representing 78% share of total revenue and demonstrating the strength of the Group's recurring revenue model. : €15.8 million in the first six months of 2025, representing 78% share of total revenue and demonstrating the strength of the Group's recurring revenue model. Cost Efficiency : 3% year-on-year cost base reduction to €19.2 million, driven by platform consolidation and streamlined operations. : 3% year-on-year cost base reduction to €19.2 million, driven by platform consolidation and streamlined operations. Cash EBITDA improvement: a 46% year-on-year improvement, reaching negative €2.6 million in the first half, reflecting ongoing margin expansion and disciplined execution on the path to sustained profitability. a 46% year-on-year improvement, reaching negative €2.6 million in the first half, reflecting ongoing margin expansion and disciplined execution on the path to sustained profitability. Operating Free Cashflow : €1.7 million compared to negative €2.6 million in H1 24, driven by the abovementioned initiatives to positive territory for the first time. : €1.7 million compared to negative €2.6 million in H1 24, driven by the abovementioned initiatives to positive territory for the first time. Acquired Business Integration : acceleration of the migration of legacy platform's customers to the Group's solutions, enabling full alignment to the core product suite and phasing out of non-strategic tools. : acceleration of the migration of legacy platform's customers to the Group's solutions, enabling full alignment to the core product suite and phasing out of non-strategic tools. Net Borrowing Position: negative €15.6 million at 30 June 2025. COMMENTS ON H1 25 RESULTS FROM AMIR ROSENTULER, CHAIRMAN AND INTERIM CEO The first half of 2025 was marked by continued volatility in the European automotive sector, as OEMs faced tariff-related uncertainty and supply chain disruptions, prompting a reassessment of production plans. At the same time, dealer sentiment remained cautious amid subdued consumer demand and elevated vehicle prices across key markets. Against this backdrop, MotorK has taken deliberate and disciplined action to strengthen its business model and accelerate the path to profitability. We have sharpened our strategic focus on scalable, high-value customer segments, optimized our product delivery infrastructure, and exited non-core, low-margin contracts. These initiatives, though impacting short-term revenue, have materially improved our operational efficiency and cost base. We are now operating with greater agility, clearer priorities, and a stronger foundation for sustainable, high-margin growth in the periods ahead. STRATEGIC AND OPERATIONAL HIGHLIGHTS CARR stood at €35.8 million in H1 2025, down from €36.6 million in December 2024, reflecting the impact of two opposing dynamics. Firstly, the new additions to CARR were at €3.9 million in the first six months of 2025, fueled by both enterprise and retail new opportunities won. However, throughout H1 2025, MotorK executed a diversified strategy aimed at increasing operational efficiency and focusing commercial efforts on core segments that align with the Company's long-term SaaS model. Following the completion of several migration programs related to previously acquired businesses, MotorK has exited legacy and highly customized contracts that no longer meet the Company's profitability or scalability criteria. This strategic realignment resulted in a temporary increase in churn that completely offset the H1 25 additional CARR achievements. The Company is now better positioned to serve scalable, high-value customer cohorts and concentrate on markets and products that deliver consistent, high-margin recurring revenue. FINANCIAL PERFORMANCE AND COST OPTIMIZATION While external pressures and the impact of strategic portfolio optimization affected the top-line growth, the Group progressed in its path to profitability. Recurring billings for the first half were €15.8 million, compared to €15.6 million in the same period last year. This result underscores the stability and predictability of the business model. Organizational streamlining efforts continued, with a carefully managed reduction in headcount and Other costs, leading to a 9% and 10% improvement respectively. Overall, the Company reduced its operating cost base by 3% compared to the same period in 2024. All these initiatives translated into a €1 million Adjusted EBITDA for H1 2025, compared to €0.1 million in H1 24, an almost break-even EBITDA of negative €0.1 million, and an improved margin profile. More importantly, Cash EBITDA came in at negative €2.6 million, compared to negative €4.8 million last year, and the Operating Free Cash-Flow turned positive for the first time, continuing the Company's trajectory toward profitability and efficiency. COMMERCIAL MOMENTUM MotorK's commercial performance in the first half of 2025 reflects the early impact of the Company's strategic portfolio refocus. While net CARR has been temporarily affected by the exit of non-core customers, gross bookings in H1 remained strong, supported by ongoing demand for digital transformation, particularly from large enterprise accounts. Geographically, Italy continued to represent the Company's largest and most resilient market, delivering €13.5 million in Revenue, up 4% year-on-year. Spain also posted solid growth of 5%, reflecting increasing traction with dealer groups and OEM partners. France and Germany experienced temporary declines of 8% and 9% respectively, largely driven by the planned phase-out of legacy, heavily customized client engagements. These exits are consistent with MotorK's strategy to streamline operations and focus on scalable, product-led deployments. Benelux delivered stable growth of 2%, contributing €1.2 million in Revenue. Overall, despite the selective contraction of the customer base, Revenues rose modestly by 1.4% compared to the prior year. This underscores the underlying strength of the core regions and validates the Company's decision to concentrate on strategic markets with strong product-market fit. As of 30 June 2025, MotorK carried forward a qualified pipeline of €12.7 million, comprising €4.7 million in enterprise opportunities and €8 million in retail. Several high-value enterprise contracts are currently in final negotiation stages. Management maintains a high degree of visibility and confidence around their expected conversion during the second half of the year. OUTLOOK Looking ahead to the second half of the year, the Company anticipates its realigned commercial engine to deliver improved retention and progressively rebuild CARR growth from a higher quality base. Management expects CARR to resume sequential growth beginning in Q4 2025, supported by new bookings and improved retention dynamics. To reflect the impact of the abovementioned uncertainty in the market and the incurred churn in the first half of 2025, the management reviewed the guideline on CARR, previously estimated to grow by a low double digit, and now expected to increase at a low single digit rate on a full-year basis. The business enters H2 with a leaner, more focused customer base and a more streamlined cost structure, with the latter further expected to reduce by approximately 10% on a full-year basis. Cash EBITDA, in line with previous estimates, is expected to turn positive on a monthly basis towards the end of 2025. While the macroeconomic environment remains unpredictable, MotorK's strategic choices over the past 18 months have created a more agile, profitable, and resilient operating model. MotorK remains confident in its long-term outlook and its ability to deliver sustainable value creation through disciplined execution and a clear focus on product-led growth. HY 2025 UNAUDITED CONSOLIDATED PROFIT AND LOSS In k€ Jun-25 Jun-24 restated Revenues 20,259 19,977 Costs for customers media services (3,993) (4,034) Personnel costs (12,621) (13,854) R&D capitalization 3,590 4,859 Other costs (6,220) (6,868) Total costs (19,244) (19,897) EBITDA Adjusted 1,015 80 Exceptional income/(costs) (793) (1,097) Stock Option Plan costs (179) (573) EBITDA 43 (1,590) Depreciation & Amortization (4,157) (5,133) EBIT (4,114) (6,723) Finance costs (net of finance income) (1,233) (1,129) Profit/(Loss) before tax (5,347) (7,852) Corporate income tax (118) (118) Profit/(Loss) for the period (5,465) (7,970) HY 2025 UNAUDITED CASH FLOW STATEMENT In k€ Jun-25 Jun-24 restated Cash - Beginning of the period 3,362 3,509 EBITDA Adjusted 1,015 80 Decrease / (increase) in working capital 691 (2,642) Operating free cash-flow 1,706 (2,562) Taxes collected / (paid) (164) 104 Cash flow from investing activities - tangible assets (5) (3) Cash flow from investing activities - R&D (3,728) (4,880) Free cash-flow (2,191) (7,341) Exceptional items (833) (897) Cash inflow/(outflow) for investing activities 3,279 (4,302) Cash inflow/(outflow) for financing activities (3,912) 2,122 Cash inflow from equity movements 5,456 14,095 Others (208) (83) Net increase in cash 1,591 3,594 Cash - End of the period 4,953 7,103 HY 2025 UNAUDITED STATEMENT OF FINANCIAL POSITION In k€ Jun-25 Dec-24 Tangible assets 2,717 3,379 Intangible assets 46,573 46,335 Investment in associates companies 0 3,538 Fixed assets 49,290 53,252 Net working capital (1,840) (1,108) Deferred tax liabilities (1,403) (1,533) Employees benefit liabilities (2,192) (2,310) Provisions (92) (121) Total invested capital 43,763 48,180 Cash and cash equivalents 4,953 3,362 Financial assets 257 242 Financial liabilities (20,736) (23,764) Net borrowing position (15,526) (20,160) Net equity 28,237 28,020 Expand HY 2025 UNAUDITED REVENUES BY PRODUCT AND SERVICES LINE In k€ Jun-25 Jun-24 restated y.o.y. change SaaS platform 15,585 14,620 7% Digital Marketing 4,020 4,559 -12% Other 654 798 -18% Revenues 20,259 19,977 1% HY 2025 UNAUDITED RECURRING AND NON RECURRING REVENUES In k€ Jun-25 Jun-24 restated y.o.y. change SaaS Recurring 15,291 14,593 5% Other recurring 502 984 -49% Recurring revenues 15,793 15,577 1% % Recurring on Revenues 78% 78% 0% Contract start-up 293 62 373% Digital 3,533 3,888 -9% Other 640 450 42% Non Recurring revenues 4,466 4,400 2% Revenues 20,259 19,977 1% HY 2025 UNAUDITED REVENUES BY GEOGRAPHY* In k€ Jun-25 Jun-24 restated y.o.y. change Italy 13,464 12,956 4% Spain 1,854 1,760 5% France 2,702 2,943 -8% Germany 1,026 1,132 -9% Benelux 1,213 1,186 2% Revenues 20,259 19,977 1% Expand HY 2025 UNAUDITED RECURRING AND NON RECURRING REVENUES In k€ Jun-25 Jun-24 restated y.o.y. change SaaS Recurring 15,291 14,593 5% Other recurring 502 984 -49% Recurring revenues 15,793 15,577 1% % Recurring on Revenues 78% 78% 0% Contract start-up 293 62 373% Digital 3,533 3,888 -9% Other 640 450 42% Non Recurring revenues 4,466 4,400 2% Revenues 20,259 19,977 1% * It represents Revenues broken down by the countries in which the legal entities are established, independently of the geographical location of the customers. Expand HY 2025 UNAUDITED CASH EBITDA In k€ Jun-25 Jun-24 restated y.o.y. change EBITDA Adjusted 1,015 80 1169% R&D Capitalization (3,590) (4,859) -26% Cash EBITDA (2,575) (4,779) -46% Expand NEXT PUBLICATION: Q3 25 TRADING UPDATE, 23 OCTOBER 2025 Forward-looking information and disclaimer This press release may include forward-looking statements. Other than reported financial results and historical information, all statements included in this press release, including, without limitation, those regarding our financial position, business strategy and management plans and objectives for future operations, may be deemed to be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words 'targets', 'plans', 'believes', 'expects', 'aims', 'intends', 'anticipates', 'estimates', 'projects', 'will', 'may', 'would', 'could' or 'should', or words or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are based on our current expectations, projections and key assumptions about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MotorK's ability to control or estimate precisely, such as future market conditions, the behavior of other market participants and the actions of governmental regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be traded, we expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. Important information This press release contains information within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014). ABOUT MOTORK PLC MotorK (AMS: MTRK) is a leading software as a service ('SaaS') provider for the automotive retail industry in the EMEA region, with approximately 350 employees and in eight countries (Italy, Spain, France, Germany, Belgium, the Netherlands, the UK, and Israel). MotorK empowers car manufacturers and dealers to improve their customer experience through a broad suite of fully integrated digital products and services. MotorK provides its customers with an innovative combination of digital solutions, SaaS cloud products and the largest R&D department in the automotive digital sales and marketing industry in Europe. MotorK is a company registered in England and Wales. Registered office: 5th Floor One New Change, London, England, EC4M 9AF - Company Registration: 9259000. For more information: or ____________________ 1 Committed ARR ('CARR') includes ARR and Committed Recurring Revenues ('CRR'). CRR refers to signed contracts to be delivered and billed. 2 Following the Group's restatement to IFRS 15 over time revenue recognition, Recurring billings are equivalent to Recurring revenues. Expand
Yahoo
20-07-2025
- Business
- Yahoo
Here's a high-potential stock to consider buying in July!
Carr's Group (LSE:CARR) could be a high-potential stock that's going under the radar. The company's entering a new era as a focused agricultural specialist and its streamlined profile, financial strength, and potential catalysts make it an intriguing proposition for value-oriented investors. What drives Carr's? After divesting its engineering division for £75m, Carr's is now a pure-play manufacturer of livestock nutrition products, mostly feedblocks, with roughly half its revenues coming from the UK and the other half from the US. This transformation has made Carr's much more dependent on the agricultural market cycle, leading to greater seasonality in its results as seen in H1 FY25. With production sites in Silloth, Ayr, and Bury St Edmunds, Carr's exports its specialist nutrition products globally, but the UK and US remain its key revenue drivers. Momentum after transition Recent interim results demonstrate the underlying momentum in the business. In H1 (six months to February) group revenue rose 7% to £50.6m, driven mainly by a strong 15% year-on-year increase in UK agriculture sales. Adjusted operating profit expanded even more, up 64% to £5.9m, as margins recovered from challenges seen during and after Covid. Yet, investors considering Carr's must look beyond the robust first half. Management's flagged that the second half of the year will likely be softer, particularly in the US, where herd sizes and demand for feedblocks remain below historic norms. Seasonality is pronounced, and with the company's new agricultural focus, volatility's inevitable. Management's cautious guidance suggests that the full-year will not simply double the strong interim figures. Running the maths I'm not going to try and guess where adjusted earnings will end up this year. However, statutory forecasts published online suggest the company's trading at 44 times forward earnings. Remember this is a statutory basis and the discrepancy with adjusted figures. However, this falls to 13 times for 2026 and nine times for 2027 as earnings improve. This would put Carr's on an earnings multiple that appears modest when set against its balance sheet strength and returning capital. Moreover, the pending tender offer could return up to £70m to shareholders, a dramatic gesture for a company of its market size. The dividend story's also promising, with the yield projected to climb from its current modest level toward 4% by 2027. Are tariffs a catalyst? One of the most significant catalysts for Carr's in the medium term is the impact of US trade policy. On one hand, higher tariffs and a weakening dollar don't bode well for Carr's' exports to the US. However, the market may prove to be fairly price inelastic. However, US tariff increases on imported beef are designed to protect and stimulate domestic livestock businesses. Over time, this could benefit Carr's materially as a larger US herd would, in theory, lead to greater demand for feedblocks and the like. For me, this is definitely a stock to watch. It's becoming a more agile business and I'm excited to see how it performs once that transition dust settles. It certainly deserves attention. The post Here's a high-potential stock to consider buying in July! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
