Air conditioner maker Carrier Global on Tuesday beat analysts' estimates for second-quarter profit and sales, but a late start to summer led to a drop in orders from residential customers.
The company now expects organic sales in its residential business to rise by a mid-single-digit percentage this year, compared with a previous forecast of high single-digit to double-digit growth.
Shares in the Florida-based company fell by 10 percent.
Quarterly revenue for Carrier's largest segment, Climate Solutions Americas, rose 14 percent year over year, driven by a 45 percent increase in sales to commercial customers.
The rise in global temperatures caused by climate change and increasing air pollution are driving demand for new air conditioning systems and air purifiers as well as for the maintenance and repair of old equipment.
Total sales in the spare parts market rose by 13% in this quarter.
The company is also benefiting from robust demand for its data center cooling products, which are used for artificial intelligence technologies.
However, the late start to the cooling season, i.e. the high-demand summer months, contributed to a 60 percent drop in orders from private customers, compared to a 100 percent increase last year.
"Sales in the private customer segment rose by 11 percent, which was below our expectations due to the lower volume," said CFO Patrick Goris during the quarterly results conference call on Tuesday.
Carrier reiterated its full-year revenue guidance of nearly $23 billion and its adjusted earnings per share guidance of between $3 and $3.10, although it lowered its expectations for consumer revenue.
Total revenue for the quarter ended June 30 rose 3 percent from a year earlier to $6.11 billion, compared with analysts' estimates of $6.09 billion, according to data compiled by LSEG.
The company reported adjusted earnings of 92 cents per share for the second quarter, compared with analysts' estimates of 90 cents per share.
