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In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 2.4% and rose 16% year over year. Net sales beat the consensus mark by 1.3% and gained 5.3% year over year.
Otis’ earnings topped the consensus mark in each of the last 16 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 87 cents in the past 30 days. The estimated figure indicates a rise of 8.8% from the year-ago quarter’s levels.
The consensus mark for net sales is pegged at $3.44 billion, suggesting a 2.9% increase from the year-ago reported figure of $3.35 billion.
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company’s first-quarter 2024 performance is likely to have benefited from higher volume, favorable pricing and improved productivity.
This, along with the company's focus on acquisitions, product innovations and the integration of new technologies driven by ongoing research and development efforts, is likely to have aided its performance in the to-be-reported quarter.
For the to-be reported quarter, OTIS projects sales growth to be roughly 3%, with total operating profit margins expected to expand over 50 basis points to 16%-plus, both led by service.
For the Service segment, our model suggests revenues to rise 5.9% to $2.16 billion compared with the prior year.
However, the company expects new equipment orders to be down roughly 10%, while portfolio and modernization orders growth to remain strong in the to-be-reported quarter. Our model predicts New Equipment revenues to decline 3.2% year over year to $1.26 billion.
It also anticipates headwinds from foreign exchange translation and increased interest expense to impact sales and thereby adjusted earnings in the to-be-reported quarter.
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.
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Willdan Group, Inc. (WLDN - Free Report) has an Earnings ESP of +47.37% and a Zacks Rank #1.
WLDN’s earnings topped the consensus mark in three of the last four quarters and met on one occasion, the average being 886.3%. Earnings for the to-be-reported quarter are expected to decline 40.6% year over year.
Dream Finders Homes, Inc. (DFH - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #1.
DFH’s earnings topped the consensus mark in the last four quarters, the average being 144.9%. Earnings for the to-be-reported quarter are expected to rise 55.6% year over year.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 53.9%. Earnings for the to-be-reported quarter are expected to decline 19.7% year over year.
Image: Bigstock
Otis Worldwide (OTIS) to Post Q1 Earnings: Factors to Note
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report first-quarter 2024 results on Apr 24, before the opening bell.
In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 2.4% and rose 16% year over year. Net sales beat the consensus mark by 1.3% and gained 5.3% year over year.
Otis’ earnings topped the consensus mark in each of the last 16 quarters.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 87 cents in the past 30 days. The estimated figure indicates a rise of 8.8% from the year-ago quarter’s levels.
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 $3.44 billion, suggesting a 2.9% increase from the year-ago reported figure of $3.35 billion.
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company’s first-quarter 2024 performance is likely to have benefited from higher volume, favorable pricing and improved productivity.
This, along with the company's focus on acquisitions, product innovations and the integration of new technologies driven by ongoing research and development efforts, is likely to have aided its performance in the to-be-reported quarter.
For the to-be reported quarter, OTIS projects sales growth to be roughly 3%, with total operating profit margins expected to expand over 50 basis points to 16%-plus, both led by service.
For the Service segment, our model suggests revenues to rise 5.9% to $2.16 billion compared with the prior year.
However, the company expects new equipment orders to be down roughly 10%, while portfolio and modernization orders growth to remain strong in the to-be-reported quarter. Our model predicts New Equipment revenues to decline 3.2% year over year to $1.26 billion.
It also anticipates headwinds from foreign exchange translation and increased interest expense to impact sales and thereby adjusted earnings in the to-be-reported quarter.
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 #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With a Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Willdan Group, Inc. (WLDN - Free Report) has an Earnings ESP of +47.37% and a Zacks Rank #1.
WLDN’s earnings topped the consensus mark in three of the last four quarters and met on one occasion, the average being 886.3%. Earnings for the to-be-reported quarter are expected to decline 40.6% year over year.
Dream Finders Homes, Inc. (DFH - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #1.
DFH’s earnings topped the consensus mark in the last four quarters, the average being 144.9%. Earnings for the to-be-reported quarter are expected to rise 55.6% year over year.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, the average being 53.9%. Earnings for the to-be-reported quarter are expected to decline 19.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.