Financial News

Otis (OTIS) Q4 Earnings Report Preview: What To Look For

OTIS Cover Image

Elevator manufacturer Otis (NYSE: OTIS) will be reporting results this Wednesday before market open. Here’s what to look for.

Otis beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $3.69 billion, up 4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

Is Otis a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Otis’s revenue to grow 5.2% year on year to $3.87 billion, improving from the 1.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share.

Otis Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Otis has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Otis’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 13.9%, and Crane reported revenues up 6.8%, topping estimates by 1.9%. GE Aerospace traded down 7.7% following the results.

Read our full analysis of GE Aerospace’s results here and Crane’s results here.

There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 8.7% on average over the last month. Otis is up 3% during the same time and is heading into earnings with an average analyst price target of $105.18 (compared to the current share price of $90.58).

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