Otis Worldwide Set to Report Q3 Earnings with Positive Outlook

In a recent report, Otis Worldwide Corporation is poised to announce its Q3 earnings, with expectations for a rise in profit per share. Given its positive EPS trajectory and strong analyst support, investors remain optimistic despite previous revenue misses.

Date: 07-10-2024

AI Rating: 6

Otis Worldwide Corporation is gearing up to release its Q3 earnings on October 23, which is a significant event for investors to watch. Analysts predict an earnings per share (EPS) of $0.97, showing a 2.1% increase from the previous year's $0.95. This growth is promising, especially as the company has consistently exceeded EPS estimates in its last four quarterly reports, with an adjusted EPS of $1.06 surpassing the consensus estimate by 2.9% in the last quarter.

Looking ahead, the forecast for fiscal 2024 suggests that OTIS will report an EPS of $3.88, which marks a 9.6% increase from $3.54 in fiscal 2023. This upward trend in EPS is a crucial indicator of the company's growing profitability, which can positively influence stock prices as it reflects operational efficiency and market competitiveness.

Moreover, despite a year-to-date stock increase of 16.9%, OTIS has underperformed compared to the S&P 500 Index's 20.6% gains. Such underperformance, coupled with a prior 7.1% drop following a revenue miss in Q2, may create a cautious sentiment among investors. In Q2, Otis reported revenues just below Wall Street estimates at $3.6 billion, leading to a reassessment of revenue expectations for the full year, now estimated between $14.3 billion and $14.5 billion.

The analyst consensus remains moderately bullish regarding OTIS stock, reflecting a blend of cautious optimism. Of the 11 analysts covering the stock, endorsements range from ‘Strong Buy’ to ‘Hold’, with an average price target of $107.50, suggesting a modest potential upside. This indicates that while there is recognition of the company's challenges, the overall sentiment toward OTIS's future prospects appears positive.

Stocks: OTIS