Elevator manufacturer Otis (NYSE: OTIS) will be reporting results this Wednesday before the bell. Here’s what you need to know.
Otis met analysts’ revenue expectations last quarter, reporting revenues of $3.35 billion, down 2.5% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue and EBITDA 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 grow 2.5% year on year to $3.69 billion, a reversal from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 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 five times over the last two years.
Looking at Otis’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 21.2%, beating analysts’ expectations by 15.6%, and 3M reported revenues up 1.4%, topping estimates by 4%. GE Aerospace traded down 1.1% following the results while 3M was also down 4%.
Read our full analysis of GE Aerospace’s results here and 3M’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 5.9% on average over the last month. Otis is up 3.1% during the same time and is heading into earnings with an average analyst price target of $104.87 (compared to the current share price of $99).
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