Otis Worldwide Beats Q2 Earnings Estimates, Raises FY21 Outlook

Otis Worldwide Corp OTIS reported second-quarter net sales growth of 15.7% year-over-year to $3.70 billion, beating the consensus of $3.45 billion.
Adjusted EPS of $0.79 topped the consensus of $0.71.
Adjusted operating margin expanded 40 bps to 15.5%.
New Equipment sales increased 33.5% Y/Y to $1.73 billion, and orders were up 23.9% at constant currency with double-digit growth in the Americas and high teens growth in EMEA and Asia.
Service sales increased 13.8% to $1.97 billion, and +7.8% on an organic basis.
The company generated cash from operating activities year-to-date of $1.12 billion, compared to $823 million a year ago. Free cash flow increased from $748 million to $1.03 billion.
FY21 Outlook: The company expects Net sales of $14.1 billion to $14.2 billion, up from the prior outlook of $13.6 billion to $13.9 billion, versus the consensus of $13.87 billion. It raised outlook for net sales to grow 10.5% to 11% Y/Y, and Organic sales up 7.5% to 8%. It also expects an adjusted operating profit of $2.16 billion to $2.18 billion.
It expects Adjusted EPS of $2.89 to $2.93, compared to the previous view of $2.78 to $2.84, versus the consensus of $2.87. It sees a free cash flow of $1.45 billion to $1.5 billion.
Price Action: OTIS shares closed at $88.52 during on Friday.

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