United Technologies Corporation , yesterday, has priced an offering of $11-billion senior notes, which are to be issued under a self registration statement. This statement has been filed with the Security and Exchange Commission. Subject to customary closing conditions, this offering is anticipated to close on Aug 16, 2018.
The offering has been made in different trances, including $1 billion of 3.350% senior notes due 2021, $2.25 billion of 3.650% senior notes due 2023, $1.5 billion of 3.950% senior notes due 2025, $3 billion of 4.125% senior notes due 2028, $750 million of 4.450% senior notes due 2038, $1.75 billion of 4.625% senior notes due 2048 and $750 million of senior notes with floating interest rate.
United Technologies intends to use the net proceeds from the issuance of these senior notes, excluding the ones due 2048, for partly funding the cash portion to be paid to shareowners of Rockwell Collins, Inc. (COL) in relation to a merger agreement signed between the two parties. On the other hand, proceeds from the offering of senior notes due 2048 will be considered for repaying debt and financing general corporate purposes.
Exiting second-quarter 2018, United Technologies had long-term debt of approximately $27,246 million, up from $24,989 million recorded at the end of 2017, and had total debt/total equity of 84.9%. During the reported quarter, the company used $2,092 million in cash to repay its long-term debt while raised $2,429 million from fresh issuances. Notwithstanding the company’s efforts to reduce debt, we believe, if unchecked, huge debt levels are likely to increase its financial burden and prove detrimental to profitability.
With a market capitalization of $106.5 billion, United Technologies presently carries a Zacks Rank #3 (Hold). It recorded a 6.5% earnings surprise in the second quarter of 2018 while the bottom line exceeded the year-ago tally by 6.5%.
For 2018, the company has increased its earnings guidance from $6.95-$7.15 to $7.10-$7.25 per share. Revenues are predicted to be $63.5-$64.5 billion, estimating organic growth rate of 5-6%. Despite these positives, material cost inflation and difficult workforce scenario have been escalating the company’s aggregate costs, of late.
Over the past month, United Technologies’ shares have rallied 2.5%, outperforming 0.6% decline recorded by the industry.
Furthermore, the stock’s earnings estimates are currently pegged at $7.22 for 2018 and $7.85 for 2019, reflecting growth of 1.4% and 0.1% from respective 30-day-ago tallies.
United Technologies Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
United Technologies Corporation , yesterday, has priced an offering of $11-billion senior notes, which are to be issued under a self registration statement. This statement has been filed with the Security and Exchange Commission. Subject to customary closing conditions, this offering is anticipated to close on Aug 16, 2018.
The offering has been made in different trances, including $1 billion of 3.350% senior notes due 2021, $2.25 billion of 3.650% senior notes due 2023, $1.5 billion of 3.950% senior notes due 2025, $3 billion of 4.125% senior notes due 2028, $750 million of 4.450% senior notes due 2038, $1.75 billion of 4.625% senior notes due 2048 and $750 million of senior notes with floating interest rate.
United Technologies intends to use the net proceeds from the issuance of these senior notes, excluding the ones due 2048, for partly funding the cash portion to be paid to shareowners of Rockwell Collins, Inc. (COL) in relation to a merger agreement signed between the two parties. On the other hand, proceeds from the offering of senior notes due 2048 will be considered for repaying debt and financing general corporate purposes.
Exiting second-quarter 2018, United Technologies had long-term debt of approximately $27,246 million, up from $24,989 million recorded at the end of 2017, and had total debt/total equity of 84.9%. During the reported quarter, the company used $2,092 million in cash to repay its long-term debt while raised $2,429 million from fresh issuances. Notwithstanding the company’s efforts to reduce debt, we believe, if unchecked, huge debt levels are likely to increase its financial burden and prove detrimental to profitability.
With a market capitalization of $106.5 billion, United Technologies presently carries a Zacks Rank #3 (Hold). It recorded a 6.5% earnings surprise in the second quarter of 2018 while the bottom line exceeded the year-ago tally by 6.5%.
For 2018, the company has increased its earnings guidance from $6.95-$7.15 to $7.10-$7.25 per share. Revenues are predicted to be $63.5-$64.5 billion, estimating organic growth rate of 5-6%. Despite these positives, material cost inflation and difficult workforce scenario have been escalating the company’s aggregate costs, of late.
Over the past month, United Technologies’ shares have rallied 2.5%, outperforming 0.6% decline recorded by the industry.
Furthermore, the stock’s earnings estimates are currently pegged at $7.22 for 2018 and $7.85 for 2019, reflecting growth of 1.4% and 0.1% from respective 30-day-ago tallies.
United Technologies Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on CSL - FREE
Get the latest research report on FSS - FREE
Get the latest research report on CR - FREE