Latest news with #OtisWorldwideCorporation
Yahoo
21-07-2025
- Business
- Yahoo
Otis Worldwide to Report Q2 Earnings: Here's What Investors Must Know
Otis Worldwide Corporation OTIS is scheduled to report second-quarter 2025 results on July 23, before the opening the last reported quarter, the company's adjusted earnings topped the Zacks Consensus Estimate by 1.1%, while the net sales missed the same by 1.7%. On a year-over-year basis, the bottom line grew 5% while the top line tumbled 3%.OTIS' earnings surpassed the consensus mark in two of the trailing four quarters and missed on the remaining two occasions, with an average surprise of 0.2%. Trend in Otis Worldwide's Estimate Revision For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has trended upward to $1.02 from $1.01 in the past 30 days. However, the estimated figure indicates a decline of 3.8% from the year-ago adjusted EPS of $1.06. Otis Worldwide Corporation Price and EPS Surprise Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote The consensus mark for net sales is pegged at $3.68 billion, indicating 2.3% growth from the year-ago figure of $3.6 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Key Factors to Note for OTIS' Q2 Earnings SalesThis leading elevator and escalator manufacturing, installation and service company's second-quarter top line is likely to have gained year over year, driven by the increased contributions from the Service segment (which contributed 65.3% to first-quarter 2025 net sales). The Service segment is expected to have gained due to favorable market trends for maintenance and repair demand alongside modernization. The company's focus on its modernization strategy has been boding well for its prospects and is likely to have added incremental value to its orders and backlog during the quarter, thus boosting the top focus on acquisitions, product innovations and the integration of new technologies, driven by ongoing research and development efforts, is likely to have aided its weak performance in the New Equipment segment (which contributed 34.7% to first-quarter 2025 net sales) is likely to have restricted the top-line growth to some extent during the second quarter due to challenges in China and, to some extent, in the EMEA region (especially Europe).For the second quarter, our model predicts the Service segment's net sales to increase year over year by 4.7% to $2.28 billion, with New Equipment segment's net sales declining 5.2% to $1.35 bottom line of OTIS is expected to have decreased in the second quarter due to the ongoing inflationary pressures, primarily higher labor and material costs, witnessed in its Service segment, accompanied by lower volume and unfavorable mix in its New Equipment segment. Although the persisting market headwinds are concerning for the margins, favorable pricing, productivity and commodity tailwinds, along with leverage from improved contributions from the Service segment, are likely to have eased the negative impacts of the headwinds during the quarter to some expect the adjusted operating margin in the New Equipment segment to decrease 220 basis points (bps) year over year to 5.5%, while the same for the Service segment is anticipated to inch up 10 bps to 24.8%.Moreover, the selling, general and administrative (SG&A) expenses in the quarter are likely to have increased due to annual wage increases and higher restructuring costs. For the to-be-reported quarter, our model expects SG&A expenses (as a percentage of net sales) to expand year over year by 50 bps to 13%. What the Zacks Model Unveils for OTIS Our proven model conclusively predicts an earnings beat for Otis Worldwide this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings ESP: OTIS has an Earnings ESP of +0.39%. You can uncover the best stocks before they're reported with our Earnings ESP Rank: Currently, the company carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. Other Stocks With the Favorable Combination Here are some other stocks from the Zacks Industrial Products sector, which per our model, have the right combination of elements to deliver an earnings beat this time Inc. GEF has an Earnings ESP of +6.95% and a Zacks Rank of company's earnings beat estimates in two of the last four quarters and missed on the other two occasions, the negative average surprise being 10.8%. Greif's earnings for the third quarter of fiscal 2025 are expected to increase 35.9%.Stanley Black & Decker, Inc. SWK currently has an Earnings ESP of +18.80% and a Zacks Rank of company's earnings beat estimates in each of the trailing four quarters, the average surprise being 18.4%. Stanley Black & Decker's earnings for the second quarter of 2025 are expected to decline 65.1%.A. O. Smith Corporation AOS currently has an Earnings ESP of +4.48% and a Zacks Rank of company's earnings beat estimates in one of the last four quarters, met on one occasion and missed on the other two occasions, the average surprise being 0.04%. A. O. Smith's earnings for the second quarter of 2025 are expected to tumble 8.5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Greif, Inc. (GEF) : Free Stock Analysis Report Otis Worldwide Corporation (OTIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-07-2025
- Business
- Yahoo
Otis Worldwide Earnings Preview: What to Expect
Valued at a market cap of $39.4 billion, Otis Worldwide Corporation (OTIS) is a global leader in the manufacturing, installation, and servicing of elevators and escalators, operating in over 1,400 locations worldwide. Headquartered in Farmington, Connecticut, Otis serves diverse sectors through its two main segments: New Equipment and Service. OTIS is expected to release its fiscal Q2 2025 earnings results on Wednesday, Jul. 23. Ahead of this event, analysts project Otis Worldwide to report an adjusted EPS of $1.01, a 4.7% decline from $1.06 in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in two of the last four quarters while missing on two other occasions. In Q1 2025, OTIS surpassed the consensus adjusted EPS estimate by 1.1%. Michael Saylor Says 'You'll Wish You'd Bought More' Bitcoin as MicroStrategy Doubles Down Is Microsoft Stock About to Go Nuclear? Wolfspeed Is Surging After Filing for Bankruptcy. Is It Too Late to Touch WOLF Stock Here? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2025, analysts forecast the elevator maker to report adjusted EPS of $4.04, up 5.5% from $3.83 in fiscal 2024. Moreover, adjusted EPS is expected to grow 9.2% year-over-year to $4.41 in fiscal 2026. Otis Worldwide has risen over 4% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) over 13% return and the Industrial Select Sector SPDR Fund's (XLI) 22.2% gain over the same period. Despite beating expectations with Q1 2025 adjusted EPS of $0.92, Otis Worldwide saw its shares drop 6.7% on Apr. 23, as net sales fell 2.5% to $3.4 billion, missing consensus estimates. The decline was attributed to soft demand in the New Equipment segment, particularly in China's struggling property market, as well as concerns over a projected $45 million to $75 million hit to operating profit from U.S.-China tariffs. Still, the company raised its full-year revenue outlook to a range of $14.6 billion to $14.8 billion. Analysts' consensus view on Otis Worldwide stock is cautious, with an overall 'Hold' rating. Among 11 analysts covering the stock, two suggest a "Strong Buy," one "Moderate Buy," six give a "Hold," and two provide a "Strong Sell" rating. As of writing, OTIS is trading below the average analyst price target of $101.09. On the date of publication, Sohini Mondal 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
13-05-2025
- Business
- Yahoo
Otis Worldwide Corporation (OTIS) Surged Due to Its Low Exposure to Tariff
The London Company, an investment management company, released 'The London Company Mid Cap Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. After two years of robust earnings, US equities entered a correction territory in Q1. The portfolio declined 4.3% (-4.5%, net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Sector exposure was a headwind to the strategy's relative performance in the quarter. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Otis Worldwide Corporation (NYSE:OTIS). Otis Worldwide Corporation (NYSE:OTIS) engages in the manufacturing, installation, and servicing of elevators and escalators. The one-month return of Otis Worldwide Corporation (NYSE:OTIS) was -1.26%, and its shares gained 0.49% of their value over the last 52 weeks. On May 12, 2025, Otis Worldwide Corporation (NYSE:OTIS) stock closed at $98.00 per share with a market capitalization of $38.509 billion. The London Company Mid Cap Strategy stated the following regarding Otis Worldwide Corporation (NYSE:OTIS) in its Q1 2025 investor letter: "Otis Worldwide Corporation (NYSE:OTIS) - Despite tough 4Q24 earnings, OTIS shares rallied in the first quarter due to its low exposure to tariffs/global trade war risks. Our conviction in the stock reflects the company's strong execution in the China market despite macro headwinds and the oligopolistic nature of the elevator and escalator industry." A technician in a safety harness inspecting a passenger elevator in a modern office building. Otis Worldwide Corporation (NYSE:OTIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Otis Worldwide Corporation (NYSE:OTIS) at the end of the fourth quarter which was 32 in the previous quarter. Otis Worldwide Corporation (NYSE:OTIS) reported revenue of $3.3 billion in Q1 2025 with organic sales flat year over year. While we acknowledge the potential of Otis Worldwide Corporation (NYSE:OTIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Otis Worldwide Corporation (NYSE:OTIS) and shared the list of top trending stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-05-2025
- Business
- Yahoo
Why Otis Worldwide's (NYSE:OTIS) Earnings Are Better Than They Seem
The stock was sluggish on the back of Otis Worldwide Corporation's (NYSE:OTIS) recent earnings report. Along with the solid headline numbers, we think that investors have some reasons for optimism. We've discovered 3 warning signs about Otis Worldwide. View them for free. Importantly, our data indicates that Otis Worldwide's profit was reduced by US$281m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Otis Worldwide to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Otis Worldwide's earnings over the last year, but we might see an improvement next year. Because of this, we think Otis Worldwide's earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 31% annually, over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing Otis Worldwide at this point in time. Every company has risks, and we've spotted 3 warning signs for Otis Worldwide (of which 2 are a bit unpleasant!) you should know about. Today we've zoomed in on a single data point to better understand the nature of Otis Worldwide's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Otis Worldwide's (NYSE:OTIS) Dividend Will Be Increased To $0.42
Otis Worldwide Corporation (NYSE:OTIS) will increase its dividend on the 6th of June to $0.42, which is 7.7% higher than last year's payment from the same period of $0.39. This takes the annual payment to 1.7% of the current stock price, which is about average for the industry. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Solid dividend yields are great, but they only really help us if the payment is sustainable. Prior to this announcement, Otis Worldwide's dividend was comfortably covered by both cash flow and earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. Over the next year, EPS is forecast to expand by 33.8%. Assuming the dividend continues along recent trends, we think the payout ratio could be 37% by next year, which is in a pretty sustainable range. View our latest analysis for Otis Worldwide The dividend's track record has been pretty solid, but with only 5 years of history we want to see a few more years of history before making any solid conclusions. The dividend has gone from an annual total of $0.80 in 2020 to the most recent total annual payment of $1.56. This means that it has been growing its distributions at 14% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. We are encouraged to see that Otis Worldwide has grown earnings per share at 11% per year over the past five years. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. To that end, Otis Worldwide has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
