OTIS Earnings Prediction
The chart below shows how OTIS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OTIS sees a +0.57% change in stock price 10 days leading up to the earnings, and a +2.42% change 10 days following the report. On the earnings day itself, the stock moves by -1.49%. This data can give you a slight idea of what to expect for the next quarter's release.
OTIS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.67B
1.52%
3.58%
Gross Margin
29.17%
-1.12%
-3.98%
Operating Margin
15.29%
0.07%
236.78%
Net Margin
9.61%
1.16%
-38.79%
EPS
0.84
6.33%
-37.31%
No Data Available
OTIS Earnings Analysis
Otis Worldwide Corp Corporation (OTIS.N) Earnings Conference Call
Positive
Organic Sales Growth Achievement: Achieved organic sales growth of 1.9% in Q4 2024, driven by a 7.8% increase in service performance, highlighting strong maintenance and modernization segments.
Record Quarterly Cash Flow: Generated $682 million in adjusted free cash flow for Q4 2024, marking the highest quarterly cash flow since the spin-off, supported by excellent collections and reduced net working capital.
Adjusted EPS Growth: Expanded adjusted EPS by 8.2% in 2024, reflecting strong operational performance and a lower share count, contributing to a total adjusted EPS of approximately $1.29 for the year.
Modernization Orders Surge: Increased modernization orders by 18% in Q4 2024, with a backlog growth of 13% at constant currency, indicating robust demand and positioning for future growth.
Shareholder Value Commitment: Returned $1.6 billion to shareholders through dividends and share repurchases in 2024, demonstrating a commitment to shareholder value amidst a challenging market environment.
Negative
Decline in Equipment Orders: New equipment orders declined 4% in Q4 2024, primarily due to a more than 20% drop in China, indicating significant market challenges in that region.
Decline in Organic Sales: New equipment organic sales were down 6.8% in Q4, with China experiencing a greater than 20% decline, reflecting ongoing softness in demand and competitive pricing pressures.
Operating Profit Decline: Adjusted operating profit for new equipment was down $24 million in Q4, driven by lower volume and unfavorable regional and product mix, highlighting operational difficulties in the segment.
Equipment Backlog Decline: The new equipment backlog at constant currency decreased by 4% year-over-year, indicating a weakening demand outlook and potential revenue challenges ahead.
EMEA Market Decline: The overall EMEA market was down mid single digits in 2024, with expectations of continued decline, suggesting persistent headwinds in that region's new equipment business.
OTIS FAQs
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OTIS Earning Call Sentiment
Earnings call transcript: Otis Worldwide Q4 2024 misses EPS forecast
OTIS.N
1.4%Positive
The earnings call reveals mixed signals. While there is strong service growth and shareholder returns, challenges like competitive pressures, supply chain issues, and margin pressures persist. The Q&A section highlights uncertainties in China's market and unclear management responses. Despite positive adjustments in free cash flow and EPS, the decline in new equipment orders and margin pressures balance out the optimism, resulting in a neutral sentiment.
