Otis Worldwide Q3 Earnings Beat Estimates

Otis Worldwide Corp OTIS reported third-quarter FY21 sales growth of 10.8% year-over-year to $3.62 billion, +8.1% on an organic basis, beating the consensus of $3.54 billion.
New Equipment sales of $1.68 billion (+18.1% Y/Y), +14.1% organic. Organic sales were up mid-teens in the Americas, up to low single digits in EMEA, and up high-teens in Asia with double-digit growth in China.
Service sales of $1.94 billion (+5.1% Y/Y), a 3.6% increase in organic basis. Organic maintenance and repair sales increased 4.7%, and organic modernization sales decreased 1.2%.
Adjusted EPS improved to $0.77 from $0.69 in 3Q20, beating the consensus of $0.73.
The operating income increased by 19.4% Y/Y to $542 million, and the margin expanded by 110 bps to 15%. Adjusted operating margin expanded by 20 bps to 15.6%.
Otis Worldwide generated cash from operating activities year-to-date of $1.47 billion, compared to $1.17 billion a year ago. Free cash flow of $1.36 billion.
The company completed $725 million in share repurchases year-to-date.
New Equipment orders were up by 3.8% Y/Y; backlog up 4% Y/Y and 1% constant currency.
FY21 Outlook: Otis Worldwide expects Net sales of ~$14.3 billion, up 11.8% - 12.3% (prior expectation $14.1 billion - $14.2 billion) versus the consensus of $14.23 billion. Organic sales up 8.5% - 9% (prior expectation 7.5% - 8%); adjusted operating profit of $2.18 billion - $2.19 billion (prior expectation $2.16 billion - $2.18 billion).
It expects adjusted EPS of ~$2.95 (prior view $2.89 - $2.93) against the consensus of $2.96. Free cash flow $1.5 - $1.55 billion (prior $1.45 billion - $1.5 billion).
Price Action: OTIS shares closed higher by 0.3% at $85.63 on Friday.

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga