Otis (OTIS) To Report Earnings Tomorrow: Here Is What To Expect

OTIS Cover Image

Elevator manufacturer Otis (NYSE: OTIS) will be announcing earnings results this Wednesday before market hours. Hereโ€™s what to look for.

Otis missed analystsโ€™ revenue expectations by 2.6% last quarter, reporting revenues of $3.60 billion, flat year on year. It was a softer quarter for the company, with a significant miss of analystsโ€™ revenue estimates.

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

This quarter, analysts are expecting Otisโ€™s revenue to grow 2.7% year on year to $3.64 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.00 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 Streetโ€™s revenue estimates six times over the last two years.

Looking at Otisโ€™s peers in the general industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 26.4%, beating analystsโ€™ expectations by 3.7%, and Honeywell reported revenues up 7%, topping estimates by 2.6%. GE Aerospace traded down 1.6% following the results while Honeywell was up 4.6%.

Read our full analysis of GE Aerospaceโ€™s results here and Honeywellโ€™s results here.

There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 3.8% on average over the last month. Otisโ€™s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $101.29 (compared to the current share price of $92.08).

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