Carrier Global Corp ( CARR )  shares are trading higher, rebounding from earlier weakness following first quarter FY24 results.

Net sales rose 17% Y/Y to $6.18 billion, missing the consensus of $6.28 billion.

Adjusted operating profit of $927 million was up 44% Y/Y, driven by strong productivity and the contribution from Viessmann Climate Solutions. Margin expanded to 15.0% from 12.2% a year ago.

The company reported adjusted EPS of $0.62, beating the consensus of $0.51.

Net cash provided by operating activities totaled $40 million, and capital expenditures were $104 million, resulting in a free cash outflow of $(64) million.

The company exited the quarter with cash and cash equivalents worth $1.31 billion.

David Gitlin, Carrier Chairman & CEO, said, “We closed on Viessmann Climate Solutions at the beginning of the year, which will be transformational for Carrier and the industry. We are focused on capitalizing on the long-term secular sustainability trends, outperforming the market, and achieving and accelerating revenue and cost synergies.”

“The business exits are also on track as we are within months of closing on three of our four transactions and are making significant progress on completing the fourth. We now expect to resume share repurchases in 2024 as the net proceeds from the announced transactions help us return to ~2x net leverage this year.”

Read: Fire Sale: Carrier Global Divests Industrial Fire Unit For $1.425B In Portfolio Shake-Up

FY24 Outlook: Carrier reiterated adj. EPS of $2.80-$2.90 versus the $2.84 estimate. 

The company revised its sales outlook to ~$26 billion from ~$26.5 billion (vs. $26.205 billion estimate), with mid-single-digit organic growth.

Carrier now sees an adjusted operating margin of 15.5% (vs. 15%-15.5% earlier) and a free cash flow of ~$0.4 billion.

Also Read: Carrier Global Invests In Strategic Thermal Labs For Data Center Cooling Solutions

Investors can gain exposure to the stock via First Trust US Equity Opportunities ETF ( FPX ) and Invesco S&P Spin-Off ETF ( CSD ) .

Price Action: CARR shares are up 7.3% at $58.77 at the last check Thursday.