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Factors Setting the Tone for Otis Worldwide (OTIS) Q3 Earnings
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Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report third-quarter 2022 results on Oct 26, before the opening bell.
In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 10.3% and rose 11.7% year over year. Net sales missed the consensus mark by 1.5% and declined 5% year over year.
Otis’ earnings topped the consensus mark in all the last 10 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 78 cents in the past 60 days. The estimated figure indicates a 1.3% increase from the year-ago quarter’s level. The consensus mark for net sales is pegged at $3.44 billion, suggesting a 5.01% decrease from the year-ago reported figure of $3.62 billion.
The world's leading elevator and escalator manufacturing, installation and service company is expected to have registered higher earnings in the third quarter despite sales decline. Otis is improving the business on various strategies like acquisitions, product innovations and new technologies through continuous research and development.
Headwinds like commodity inflation and the absence of temporary cost actions are likely to have put pressure on the bottom line. OTIS expects tough organic growth and a sequentially similar earnings performance in businesses for the to-be-reported quarter. Also, currency headwinds are likely to have added to the woes.
New Equipment is expected to have registered tepid revenues in the third quarter. The Zacks Consensus Estimate for New Equipment revenues is pegged at $1.51 billion, which indicates a decrease of 10.3% from $1.68 billion in the year-ago period.
For Service, revenues are expected to have increased in the quarter to be reported. The Zacks Consensus Estimate for Service revenues is pegged at $1.93 billion, which indicates a slight fall of 0.4% from $1.97 billion in the year-ago period.
The consensus mark for the New Equipment unit’s adjusted operating profit indicates a fall of 25.2%, while that of Service suggests 2.2% growth from the year-ago reported figure
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Otis this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as elaborated below.
Earnings ESP: Otis has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Headquartered in Stamford, CT, United Rentals, Inc. (URI - Free Report) , the largest equipment rental company in the world, beat on earnings in three of the trailing four quarters and missed on the same on one occasion, the average surprise being 8%.
URI is poised to beat expectations when it reports third-quarter 2022 results on Oct 26, after the closing bell. URI has a Zacks Rank #3 at present and an Earnings ESP of +1.46%.
Better fleet productivity on broad-based rental demand in non-residential construction and industrial verticals, higher total and rental revenues, and stronger pricing bodes well for United Rentals’ quarterly performance.
Headquartered in Toledo, OH, Owens Corning (OC - Free Report) , a world leader in building materials systems and composite solutions, surpassed on earnings in all the trailing four quarters, the average being 12.2%.
OC is poised to beat expectations when it reports third-quarter 2022 results on Oct 26, before the opening bell. Owens Corning currently has a Zacks Rank #2 and an Earnings ESP of +4.09%.
Higher demand across the markets served, structural improvements, strategic investments, strong commercial and operational execution and a focus on acquisition are expected to be reflected in the impending quarterly results.
PulteGroup, Inc. (PHM - Free Report) , an Atlanta, GA-based homebuilder, beat on earnings in three of the trailing four quarters and missed on the same on a single occasion, the average surprise being 5.6%.
PHM is poised to beat expectations when it reports third-quarter 2022 results on Oct 25, before the opening bell. PulteGroup has a Zacks Rank of 3 and an Earnings ESP of +0.18%, at present.
Solid backlog level, improved gross margin and overhead leverage are expected to have supported growth for PHM in the quarter to be reported.
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Factors Setting the Tone for Otis Worldwide (OTIS) Q3 Earnings
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report third-quarter 2022 results on Oct 26, before the opening bell.
In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 10.3% and rose 11.7% year over year. Net sales missed the consensus mark by 1.5% and declined 5% year over year.
Otis’ earnings topped the consensus mark in all the last 10 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 78 cents in the past 60 days. The estimated figure indicates a 1.3% increase from the year-ago quarter’s level. The consensus mark for net sales is pegged at $3.44 billion, suggesting a 5.01% decrease from the year-ago reported figure of $3.62 billion.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company is expected to have registered higher earnings in the third quarter despite sales decline. Otis is improving the business on various strategies like acquisitions, product innovations and new technologies through continuous research and development.
Headwinds like commodity inflation and the absence of temporary cost actions are likely to have put pressure on the bottom line. OTIS expects tough organic growth and a sequentially similar earnings performance in businesses for the to-be-reported quarter. Also, currency headwinds are likely to have added to the woes.
New Equipment is expected to have registered tepid revenues in the third quarter. The Zacks Consensus Estimate for New Equipment revenues is pegged at $1.51 billion, which indicates a decrease of 10.3% from $1.68 billion in the year-ago period.
For Service, revenues are expected to have increased in the quarter to be reported. The Zacks Consensus Estimate for Service revenues is pegged at $1.93 billion, which indicates a slight fall of 0.4% from $1.97 billion in the year-ago period.
The consensus mark for the New Equipment unit’s adjusted operating profit indicates a fall of 25.2%, while that of Service suggests 2.2% growth from the year-ago reported figure
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Otis this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as elaborated below.
Earnings ESP: Otis has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Otis carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Headquartered in Stamford, CT, United Rentals, Inc. (URI - Free Report) , the largest equipment rental company in the world, beat on earnings in three of the trailing four quarters and missed on the same on one occasion, the average surprise being 8%.
URI is poised to beat expectations when it reports third-quarter 2022 results on Oct 26, after the closing bell. URI has a Zacks Rank #3 at present and an Earnings ESP of +1.46%.
Better fleet productivity on broad-based rental demand in non-residential construction and industrial verticals, higher total and rental revenues, and stronger pricing bodes well for United Rentals’ quarterly performance.
Headquartered in Toledo, OH, Owens Corning (OC - Free Report) , a world leader in building materials systems and composite solutions, surpassed on earnings in all the trailing four quarters, the average being 12.2%.
OC is poised to beat expectations when it reports third-quarter 2022 results on Oct 26, before the opening bell. Owens Corning currently has a Zacks Rank #2 and an Earnings ESP of +4.09%.
Higher demand across the markets served, structural improvements, strategic investments, strong commercial and operational execution and a focus on acquisition are expected to be reflected in the impending quarterly results.
PulteGroup, Inc. (PHM - Free Report) , an Atlanta, GA-based homebuilder, beat on earnings in three of the trailing four quarters and missed on the same on a single occasion, the average surprise being 5.6%.
PHM is poised to beat expectations when it reports third-quarter 2022 results on Oct 25, before the opening bell. PulteGroup has a Zacks Rank of 3 and an Earnings ESP of +0.18%, at present.
Solid backlog level, improved gross margin and overhead leverage are expected to have supported growth for PHM in the quarter to be reported.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.