- Otis Worldwide Corp OTIS reported first-quarter FY22 sales growth of 0.2% year-over-year to $3.414 billion, +3.1% on an organic basis, missing the consensus of $3.43 billion.
- New Equipment sales of $1.42 billion (-2.5% Y/Y), -0.5% organic. New Equipment orders were up 8.8% at constant currency, with growth in all regions. Backlog increased 4% Y/Y.
- Service sales of $1.99 billion (+2.2% Y/Y), a 5.8% increase on an organic basis. Organic maintenance and repair sales increased 5.6%, and organic modernization sales increased 6.9%.
- Adjusted EPS improved to $0.77 from $0.72 in 1Q21, beating the consensus of $0.74.
- The operating income increased 3% to $526 million, and the margin expanded by 50 bps to 15.4%. The adjusted operating margin was 15.9%, up 30 bps.
- Otis generated cash from operating activities for Q1 of $504 million, compared to $585 million a year ago.
- Free cash flow was $474 million. It held cash and equivalents of $3.1 billion as of March 31, 2022.
- Otis completed $200 million in share repurchases and repaid $500 million of debt during the quarter.
- OTIS board recently declared a quarterly dividend of $0.29 per share, representing a 20.8% increase, payable on June 10, 2022, to shareholders of record on May 20, 2022.
- FY22 Outlook, updated to exclude Russia business: OTIS expects Adjusted net sales of ~$14.1 billion - $14.3 billion (prior expectation was $14.4 billion - $14.7 billion) and Organic sales up 3% - 4% versus the consensus of $14.62 billion.
- It expects adjusted operating profit of $2.2 billion - $2.25 billion (prior $2.24 billion - $2.3 billion).
- Adjusted EPS of $3.22 - $3.27 (prior $3.20 - $3.30) versus the consensus of $3.28.
- Price Action: OTIS shares traded higher by 4.20% at $76.50 during the premarket session on Monday.
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