Otis Worldwide Q4 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Performance: Otis Worldwide reported a Q4 non-GAAP EPS of $1.03, meeting expectations, but its revenue of $3.8 billion, growing 3.3% year-over-year, fell short of market expectations by $70 million, indicating challenges in revenue growth.
- Full Year Outlook: The company projects net sales for 2023 to be between $15.0 billion and $15.3 billion, slightly below the consensus of $15.26 billion, reflecting cautious market sentiment regarding its growth prospects.
- Organic Sales Trends: Organic sales are expected to grow in the low to mid-single digits, with new equipment sales anticipated to decline in low single digits to flat, while service sales are projected to increase in the mid to high single digits, highlighting performance disparities across business lines.
- Adjusted Financial Metrics: Adjusted operating profit is expected to range from $2.5 billion to $2.6 billion, with a constant currency increase of $60 million to $100 million, and adjusted free cash flow projected at $1.6 billion to $1.7 billion, indicating robust cash flow management.
Analyst Views on OTIS
Wall Street analysts forecast OTIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OTIS is 100.67 USD with a low forecast of 92.00 USD and a high forecast of 111.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
3 Hold
1 Sell
Moderate Buy
Current: 90.580
Low
92.00
Averages
100.67
High
111.00
Current: 90.580
Low
92.00
Averages
100.67
High
111.00
About OTIS
Otis Worldwide Corporation is an elevator and escalator manufacturing, installation and service company. The Company’s segments include New Equipment and Service. The New Equipment segment designs, manufactures, sells and installs a range of passenger and freight elevators, and escalators and moving walkways for residential, commercial and infrastructure projects. Its elevator and escalator solutions include Gen2, Gen3, Gen360 and SkyRise. Through its Service segment, it performs maintenance and repair services, and modernization services to upgrade elevators and escalators. Through its network of service sales personnel, it sells its services directly to customers in all significant elevator and escalator verticals around the world. It serves customers in over 200 countries and territories around the world. The SkyRise advanced elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed-use skyscrapers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
