Otis Worldwide Braces for Fiscal Q4 Earnings Amid Mixed Analyst Sentiment
With a market cap of $36.9 billion, Otis Worldwide Corporation (OTIS) stands out as a leading manufacturer, installer, and service provider for elevators and escalators. The company manages a maintenance portfolio exceeding 2 million units worldwide and presents innovative solutions like the Gen360 elevator and Gen2 system, aimed at improving building mobility and efficiency. Investors are keenly awaiting the upcoming announcement of its fiscal Q4 earnings, set for Wednesday, Jan. 29.
Analysts Predict Positive Earnings Growth
Prior to this crucial earnings announcement, analysts project that OTIS will reveal a profit of $0.96 per share, reflecting a 10.3% increase from $0.87 per share reported during the same quarter last year. Over the past year, Otis has exceeded Wall Street’s earning expectations in three of the last four quarters, although it did miss estimates once. Notably, in Q3, OTIS’s earnings fell short by just 1% of the consensus EPS estimate.
Outlook for Fiscal 2024
Looking forward to fiscal 2024, experts anticipate the Farmington, Connecticut-based company will achieve an EPS of $3.86, marking a 9% increase from $3.54 in fiscal 2023.
Market Performance and Recent Decline
Shares of Otis Worldwide have increased by 5.3% over the last year. However, this rate lags behind the S&P 500 Index, which has experienced a remarkable 26.5% surge, and the Industrial Select Sector SPDR Fund’s (XLI) 19.1% return during the same period.
On Oct. 30, shares of Otis Worldwide Corporation fell by 3.1% following disappointing Q3 2024 results. The company reported adjusted earnings of $0.96 per share and net sales of $3.6 billion, both below expectations. Poor performance in the New Equipment segment, particularly in China, along with a downgrade of its 2024 forecast for organic sales to approximately $14.2 billion and adjusted free cash flow to between $1.4 billion and $1.5 billion, impacted investor confidence. Furthermore, although there was growth in the Service segment, challenges in achieving operating margins, along with foreign exchange and corporate costs, contributed to the stock’s decline.
Analysts Remain Cautious
Current analyst opinions on Otis Worldwide’s stock lean towards caution, with an overall “Hold” rating. Out of 11 analysts monitoring the stock, two recommend a “Strong Buy,” one suggests a “Moderate Buy,” six advocate for a “Hold,” and two advise a “Strong Sell.” As of now, OTIS’s share price is below the average analyst target of $103.18.
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. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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