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United Technologies (UTX) Q3 Earnings Top, '18 EPS View Up
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United Technologies Corporation reported better-than-expected results for third-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.93 per share, surpassing the Zacks Consensus Estimate by 6.6%. The reported figure also came in higher than the year-ago tally of $1.73 per share.
Revenues in the reported quarter came in at $16,510 million, up 9.6% year over year. The top line also outpaced the Zacks Consensus Estimate of $16,140 million. Revenues grew 8% year over year organically, primarily on the back of the newly-made innovation investments.
Segmental Break-Up
Otis’ revenues in the reported quarter were $3,223 million, up 2.1% year over year. Aggregate sales of the UTC Climate, Controls & Security segment increased 4.1% year over year to $4,880 million. The Pratt & Whitney segment’s third-quarter revenues came in at $4,789 million, up 23.7% from the year-ago tally. The top-line performance of the UTC Aerospace Systems segment improved 8.7% year over year to $3,955 million.
United Technologies Corporation Price, Consensus and EPS Surprise
Cost of products and services sold during the Sep-end quarter was $12,536 million, up 12.9% year over year.
Selling, general and administrative expenses in the third quarter flared up 6.3% year over year to $1,681 million.
Adjusted operating margin in the quarter was 14.1%, down 90 basis points from the year-ago figure.
Balance Sheet/Cash Flow
Exiting the third quarter, United Technologies had cash and cash equivalents of $13,799 million, up from $8,985 million recorded as of Dec 21, 2017. Long-term debt stood at $38,275 million, up from $24,989 million recorded at the end of 2017.
During the Jul-Sep quarter, the company generated $1,762 million cash from operating activities, as against $29 million cash used in the year-ago quarter. Capital expended was down 6.8% year over year to $413 million.
Outlook
United Technologies is poised to boost its revenues and profitability on the back of stronger end-market demand and innovation investments. The company believes the Rockwell Collins buyout deal (inked in September 2017) will strengthen its position as a premium systems supplier in the global aerospace industry. This Zacks Rank #2 (Buy) company has raised its 2018 earnings view to $7.20-$7.30 per share from the prior guidance of $7.10-$7.25 per share. The company also lifted the lower end of its sales view for 2018. Revenue for the full year is currently projected at $64.0-$64.5 billion, as against the previous view of $63.5-$64.5 billion. Notably, the company anticipates to secure 6% organic sales growth in 2018.
Other Key Picks
Some other top-ranked stocks in the same space are listed below:
Macquarie Infrastructure Company sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 8.05% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion Corp. also flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 4.01% in the trailing four quarters.
Atkore International Group Inc. (ATKR - Free Report) is another Zacks #1 Ranked company. The stock delivered an average positive earnings surprise of 24.46% in the preceding four quarters.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X 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) Q3 Earnings Top, '18 EPS View Up
United Technologies Corporation reported better-than-expected results for third-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.93 per share, surpassing the Zacks Consensus Estimate by 6.6%. The reported figure also came in higher than the year-ago tally of $1.73 per share.
Revenues in the reported quarter came in at $16,510 million, up 9.6% year over year. The top line also outpaced the Zacks Consensus Estimate of $16,140 million. Revenues grew 8% year over year organically, primarily on the back of the newly-made innovation investments.
Segmental Break-Up
Otis’ revenues in the reported quarter were $3,223 million, up 2.1% year over year. Aggregate sales of the UTC Climate, Controls & Security segment increased 4.1% year over year to $4,880 million. The Pratt & Whitney segment’s third-quarter revenues came in at $4,789 million, up 23.7% from the year-ago tally. The top-line performance of the UTC Aerospace Systems segment improved 8.7% year over year to $3,955 million.
United Technologies Corporation Price, Consensus and EPS Surprise
United Technologies Corporation Price, Consensus and EPS Surprise | United Technologies Corporation Quote
Costs and Margins
Cost of products and services sold during the Sep-end quarter was $12,536 million, up 12.9% year over year.
Selling, general and administrative expenses in the third quarter flared up 6.3% year over year to $1,681 million.
Adjusted operating margin in the quarter was 14.1%, down 90 basis points from the year-ago figure.
Balance Sheet/Cash Flow
Exiting the third quarter, United Technologies had cash and cash equivalents of $13,799 million, up from $8,985 million recorded as of Dec 21, 2017. Long-term debt stood at $38,275 million, up from $24,989 million recorded at the end of 2017.
During the Jul-Sep quarter, the company generated $1,762 million cash from operating activities, as against $29 million cash used in the year-ago quarter. Capital expended was down 6.8% year over year to $413 million.
Outlook
United Technologies is poised to boost its revenues and profitability on the back of stronger end-market demand and innovation investments. The company believes the Rockwell Collins buyout deal (inked in September 2017) will strengthen its position as a premium systems supplier in the global aerospace industry. This Zacks Rank #2 (Buy) company has raised its 2018 earnings view to $7.20-$7.30 per share from the prior guidance of $7.10-$7.25 per share. The company also lifted the lower end of its sales view for 2018. Revenue for the full year is currently projected at $64.0-$64.5 billion, as against the previous view of $63.5-$64.5 billion. Notably, the company anticipates to secure 6% organic sales growth in 2018.
Other Key Picks
Some other top-ranked stocks in the same space are listed below:
Macquarie Infrastructure Company sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 8.05% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion Corp. also flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 4.01% in the trailing four quarters.
Atkore International Group Inc. (ATKR - Free Report) is another Zacks #1 Ranked company. The stock delivered an average positive earnings surprise of 24.46% in the preceding four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X 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>>