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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Otis (OTIS) Shares Are Trading Lower Today

OTIS Cover Image

What Happened?

Shares of elevator manufacturer Otis (NYSE: OTIS) fell 10.8% in the afternoon session after the company reported disappointing second-quarter financial results that missed revenue expectations and pointed to significant weakness in China. The elevator and escalator manufacturer’s total revenue came in at $3.6 billion, falling short of analyst estimates. This was driven by a sharp 10% decline in its New Equipment segment, which was hit particularly hard by a sales drop of over 20% in China. The company’s overall organic sales, which strip out currency effects and acquisitions, fell 2%. While adjusted earnings per share of $1.05 slightly beat expectations, the sales miss and the steep decline in the crucial Chinese market concerned investors. In response to the challenging environment, Otis also trimmed its full-year sales forecast.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Otis? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Otis’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Otis and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 6.2% on the news that the company reported underwhelming first-quarter 2025 results. Its organic revenue in the quarter fell short of Wall Street's estimates. Revenue was just in line but EPS beat. Looking ahead, Otis lifted full-year revenue guidance, and the updated figure slightly beat analysts' expectations. Overall, this was a mixed yet weaker quarter.

Otis is down 2% since the beginning of the year, and at $90.43 per share, it is trading 14.7% below its 52-week high of $106.01 from October 2024. Investors who bought $1,000 worth of Otis’s shares 5 years ago would now be looking at an investment worth $1,531.

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