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United Technologies (UTX) Beats Q3 Earnings, 2017 View Up
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United Technologies Corporation reported solid third-quarter 2017 results driven by superior organic growth and diligent execution of operational plans. GAAP earnings from continuing operations for the reported quarter were $1.67 per share compared with $1.74 in the year-earlier quarter. Excluding restructuring and other non-recurring items, adjusted earnings for the reported quarter were $1.73 per share, which beat the Zacks Consensus Estimate by 5 cents.
Net sales in the reported quarter came in at $15,062 million compared with $14,354 million in the year-ago quarter and exceeded the Zacks Consensus Estimate of $14,886 million. The superior top-line growth was primarily attributable to organic growth of 6% – the highest such growth reported since 2011.
United Technologies Corporation Price, Consensus and EPS Surprise
Net sales of Otis were $3,156 million compared with $3,018 million in the prior-year quarter.
Aggregate quarterly revenues of UTC Climate, Controls & Security came in at $4,688 million compared with $4,415 million in the year-ago quarter.
Pratt & Whitney revenues were $3,871 million, up from $3,501 million in the year-ago quarter.
Sales of UTC Aerospace Systems in the quarter came in at $3,637 million, marginally down from $3,646 million in the year-earlier quarter.
Costs and Margins
Operating profit for the reported quarter was $2,163 million compared with $2,251 million in the year-ago period. Despite top-line growth, operating profit for the quarter decreased year over year due to higher operating expenses.
Operating income for Otis decreased 5% year over year to $614 million for operating margin of 17.6%. Operating income of UTC Climate, Controls & Security increased 3.4% year over year to $828 million for operating margin of 17.7%. Operating profit of Pratt & Whitney declined 32.6% year over year to $229 million for operating margin of 5.9%. Operating profit of UTC Aerospace Systems improved 2.7% year over year to $616 million for operating margin of 16.9%.
Balance Sheet and Cash Flow
United Technologies exited the third quarter with cash and cash equivalents of $8,523 million, while long-term debt was $24,063 million.
For the first nine months of 2017, United Technologies generated net cash of $3,110 million from its operating activities, down from $4,567 million recorded in the year-ago period.
Outlook
United Technologies is poised to grow on the back of innovation investments, robust backlog and strategic cost-reduction efforts. With strong third-quarter results, the company raised its full-year 2017 earnings guidance. Adjusted earnings are currently anticipated to lie within the $6.58–$6.63 per share range, as against the previously estimated range of $6.45−$6.60. Additionally, this Zacks Rank #3 (Hold) company lifted its revenue guidance for 2017 from the previous projection of $58.5–$59.5 billion to $59–$59.5 billion (estimating an organic growth of 3–4% year over year).
Danaher has a long-term earnings growth expectation of 11.7%. It has beaten earnings estimates in each of the trailing four quarters with an average positive surprise of 2.6%.
Honeywell has a long-term earnings growth expectation of 9.4%. It has beaten earnings estimates thrice in each of the trailing four quarters with an average positive surprise of 2.1%.
Leucadia has a long-term earnings growth expectation of 18%. It has beaten earnings estimates twice in the trailing four quarters with an average positive surprise of 5.4%.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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United Technologies (UTX) Beats Q3 Earnings, 2017 View Up
United Technologies Corporation reported solid third-quarter 2017 results driven by superior organic growth and diligent execution of operational plans. GAAP earnings from continuing operations for the reported quarter were $1.67 per share compared with $1.74 in the year-earlier quarter. Excluding restructuring and other non-recurring items, adjusted earnings for the reported quarter were $1.73 per share, which beat the Zacks Consensus Estimate by 5 cents.
Net sales in the reported quarter came in at $15,062 million compared with $14,354 million in the year-ago quarter and exceeded the Zacks Consensus Estimate of $14,886 million. The superior top-line growth was primarily attributable to organic growth of 6% – the highest such growth reported since 2011.
United Technologies Corporation Price, Consensus and EPS Surprise
United Technologies Corporation Price, Consensus and EPS Surprise | United Technologies Corporation Quote
Segmental Details
Net sales of Otis were $3,156 million compared with $3,018 million in the prior-year quarter.
Aggregate quarterly revenues of UTC Climate, Controls & Security came in at $4,688 million compared with $4,415 million in the year-ago quarter.
Pratt & Whitney revenues were $3,871 million, up from $3,501 million in the year-ago quarter.
Sales of UTC Aerospace Systems in the quarter came in at $3,637 million, marginally down from $3,646 million in the year-earlier quarter.
Costs and Margins
Operating profit for the reported quarter was $2,163 million compared with $2,251 million in the year-ago period. Despite top-line growth, operating profit for the quarter decreased year over year due to higher operating expenses.
Operating income for Otis decreased 5% year over year to $614 million for operating margin of 17.6%. Operating income of UTC Climate, Controls & Security increased 3.4% year over year to $828 million for operating margin of 17.7%. Operating profit of Pratt & Whitney declined 32.6% year over year to $229 million for operating margin of 5.9%. Operating profit of UTC Aerospace Systems improved 2.7% year over year to $616 million for operating margin of 16.9%.
Balance Sheet and Cash Flow
United Technologies exited the third quarter with cash and cash equivalents of $8,523 million, while long-term debt was $24,063 million.
For the first nine months of 2017, United Technologies generated net cash of $3,110 million from its operating activities, down from $4,567 million recorded in the year-ago period.
Outlook
United Technologies is poised to grow on the back of innovation investments, robust backlog and strategic cost-reduction efforts. With strong third-quarter results, the company raised its full-year 2017 earnings guidance. Adjusted earnings are currently anticipated to lie within the $6.58–$6.63 per share range, as against the previously estimated range of $6.45−$6.60. Additionally, this Zacks Rank #3 (Hold) company lifted its revenue guidance for 2017 from the previous projection of $58.5–$59.5 billion to $59–$59.5 billion (estimating an organic growth of 3–4% year over year).
Stocks to Consider
Some better-ranked stocks in the industry include Danaher Corporation (DHR - Free Report) , Honeywell International Inc. (HON - Free Report) and Leucadia National Corporation , each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Danaher has a long-term earnings growth expectation of 11.7%. It has beaten earnings estimates in each of the trailing four quarters with an average positive surprise of 2.6%.
Honeywell has a long-term earnings growth expectation of 9.4%. It has beaten earnings estimates thrice in each of the trailing four quarters with an average positive surprise of 2.1%.
Leucadia has a long-term earnings growth expectation of 18%. It has beaten earnings estimates twice in the trailing four quarters with an average positive surprise of 5.4%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>