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With a market cap of $36.9 billion, Otis Worldwide Corporation (OTIS) is a global leader in elevator and escalator manufacturing, installation, and servicing. Boasting a maintenance portfolio of over 2 million units globally, Otis also offers solutions such as the Gen360 elevator and Gen2 system to enhance building mobility and efficiency. The company is expected to announce its fiscal Q4 earnings results on Wednesday, Jan. 29.
Ahead of this event, analysts expect OTIS to report a profit of $0.96 per share, up 10.3% from $0.87 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q3, OTIS missed the consensus EPS estimate by 1%.
For fiscal 2024, analysts expect the Farmington, Connecticut-based company to report an EPS of $3.86, up 9% from $3.54 in fiscal 2023.
Shares of Otis Worldwide have risen 5.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 26.5% surge and the Industrial Select Sector SPDR Fund's (XLI) 19.1% return over the period.
Shares of Otis Worldwide Corporation dipped 3.1% on Oct. 30 due to disappointing Q3 2024 results. The company reported weaker-than-expected adjusted earnings of $0.96 per share and net sales of $3.6 billion. Weak performance in the New Equipment segment, particularly in China, and a downward revision of its 2024 outlook for key metrics, including net sales to around $14.2 billion and adjusted free cash flow to $1.4 billion - $1.5 billion, dampened investor sentiment. Additionally, despite growth in the Service segment, the flat operating margin and challenges from foreign exchange and corporate costs contributed to the stock's decline.
Analysts' consensus view on Otis Worldwide’s stock is cautious, with a "Hold" rating overall. Among 11 analysts covering the stock, two recommend "Strong Buy," one suggests "Moderate Buy," six indicate “Hold,” and two give "Strong Sell." As of writing, OTIS is trading below the average analyst price target of $103.18.
