Elevator manufacturer Otis (NYSE: OTIS) will be reporting results tomorrow before market open. Here’s what to look for.
Otis missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $3.55 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates.
Is Otis a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Otis’s revenue to be flat year on year at $3.63 billion, slowing from the 5.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 per share.
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 four 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 4.5%, beating analysts’ expectations by 4.4%, and Crane reported revenues up 2.1%, topping estimates by 2%. GE Aerospace traded up 4.5% 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 4.1% on average over the last month. Otis is up 3.5% during the same time and is heading into earnings with an average analyst price target of $100.74 (compared to the current share price of $97.74).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
