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Otis Worldwide Corporation (OTIS), with a market capitalization of $36.5 billion, stands as a prominent force in the global elevator and escalator industry. The Farmington, Connecticut-based company maintains a vast service portfolio spanning over 2 million units worldwide and delivers advanced mobility solutions like the Gen2 system and Gen360 elevator, designed to boost efficiency and performance in modern buildings.
Otis is scheduled to release its Q1 earnings results on Wednesday, April 23. Ahead of this event, analysts expect the industrial titan to report a profit of $0.91 per share, up 3.4% from $0.88 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In the recent quarter, OTIS missed the consensus EPS estimate by 2.1%, primarily due to a combination of higher-than-anticipated operational costs and foreign exchange headwinds.
For fiscal 2025, analysts expect the company to report an EPS of $4.04, up 5.5% from $3.83 in fiscal 2024. Its EPS is likely to grow 9.4% annually to $4.42 in fiscal 2026.
Shares of Otis Worldwide have plunged 7.3% over the past 52 weeks, compared to the S&P 500 Index's ($SPX) 4.2% decline and the Industrial Select Sector SPDR Fund's (XLI) 7.2% fall over the period.
Following the release of its fourth-quarter results on Jan. 29, Otis Worldwide’s stock declined 1.3%. Net sales rose 1.5% year-over-year to $3.7 billion, driven by a 7.6% rise in service sales, and came in 72 basis points ahead of Street expectations. The adjusted operating margin expanded by 30 basis points to 15.9%, attributed to favorable performance in the service segment.
Looking ahead to 2025, Otis anticipates continued challenges in the new equipment market, especially in China, where a decline of approximately 10% is expected.
Analysts' consensus view on Otis Worldwide’s stock is cautious, with a "Hold" rating overall. Among 10 analysts covering the stock, one recommends "Strong Buy," one suggests "Moderate Buy," six indicate “Hold,” and two give "Strong Sell."
Its mean price target of $101.60 indicates a potential upside of 11.8% from the prevailing price levels.
