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In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 8.1% and rose 5.3% year over year. Net sales beat the consensus mark by 2.1% but declined 2% year over year.
Otis’ earnings topped the consensus mark in all the last 13 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at 86 cents in the past 60 days. The estimated figure remains at par with the year-ago quarter.
The consensus mark for net sales is pegged at $3.55 billion, suggesting a 1.8% increase from the year-ago reported figure of $3.49 billion.
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company is expected to have registered slightly higher sales and flat earnings in the second quarter. The Service unit is expected to have witnessed higher sales and margins year over year, driven by higher volume and favorable pricing and productivity.
Otis is improving business through various strategies like acquisitions, product innovations and new technologies through continuous research and development. These are likely to have added to the second quarter results.
However, inflationary pressure and currency fluctuations are likely to have put pressure on the bottom line. The company expects strong operational performance to be offset by last year's lower tax rate.
Our model suggests New Equipment revenues to grow 0.6% year over year to $1.542 billion and Service revenues to rise 2.9% to $2.01 billion compared with the prior year.
Our model predicts adjusted operating profit for New Equipment unit to fall 1.8% year over year and Services unit to grow 7.3% from the year-ago period.
What the Zacks Model Unveils
Our proven model does not 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 #4 (Sell).
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to beat on earnings in the quarter to be reported.
The Zacks Consensus Estimate for Owens Corning’s second-quarter earnings is pegged at $3.25 per share, suggesting a 15.1% fall from the year-ago quarter’s figure of $3.83. Earnings estimates for the said period moved up 10 cents in the past seven days, depicting analysts’ optimism over the company’s growth potential. Its earnings topped the consensus mark in each of the last four quarters, the average being 15.1%.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #1.
BCC’s earnings for the to-be-reported quarter are expected to decline 53.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 19%.
Installed Building Products, Inc. (IBP - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #1.
IBP’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 9%. Earnings for the to-be-reported quarter are expected to decline 8.1% year over year.
Image: Bigstock
Otis Worldwide (OTIS) to Post Q2 Earnings: Factors to Note
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report second-quarter 2023 results on Jul 26, before the opening bell.
In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 8.1% and rose 5.3% year over year. Net sales beat the consensus mark by 2.1% but declined 2% year over year.
Otis’ earnings topped the consensus mark in all the last 13 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at 86 cents in the past 60 days. The estimated figure remains at par with the year-ago quarter.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
The consensus mark for net sales is pegged at $3.55 billion, suggesting a 1.8% increase from the year-ago reported figure of $3.49 billion.
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company is expected to have registered slightly higher sales and flat earnings in the second quarter. The Service unit is expected to have witnessed higher sales and margins year over year, driven by higher volume and favorable pricing and productivity.
Otis is improving business through various strategies like acquisitions, product innovations and new technologies through continuous research and development. These are likely to have added to the second quarter results.
However, inflationary pressure and currency fluctuations are likely to have put pressure on the bottom line. The company expects strong operational performance to be offset by last year's lower tax rate.
Our model suggests New Equipment revenues to grow 0.6% year over year to $1.542 billion and Service revenues to rise 2.9% to $2.01 billion compared with the prior year.
Our model predicts adjusted operating profit for New Equipment unit to fall 1.8% year over year and Services unit to grow 7.3% from the year-ago period.
What the Zacks Model Unveils
Our proven model does not 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 #4 (Sell).
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to beat on earnings in the quarter to be reported.
Owens Corning (OC - Free Report) has an Earnings ESP of +1.11% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Owens Corning’s second-quarter earnings is pegged at $3.25 per share, suggesting a 15.1% fall from the year-ago quarter’s figure of $3.83. Earnings estimates for the said period moved up 10 cents in the past seven days, depicting analysts’ optimism over the company’s growth potential. Its earnings topped the consensus mark in each of the last four quarters, the average being 15.1%.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #1.
BCC’s earnings for the to-be-reported quarter are expected to decline 53.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 19%.
Installed Building Products, Inc. (IBP - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #1.
IBP’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 9%. Earnings for the to-be-reported quarter are expected to decline 8.1% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.