When United Technologies Corp. (NYSE: UTX) released its first-quarter financial results before the markets opened on Tuesday, the firm said that it had $1.91 in earnings per share (EPS) and $18.4 billion in revenue. Consensus estimates had called for $1.71 in EPS and $18.0 billion in revenue. In the same period of last year, it posted EPS of $1.77 on $15.24 billion in revenue.
First-quarter sales were up 20% over the prior year, including eight points of organic sales growth. These results exceeded expectations, primarily due to better than expected Collins Aerospace and Otis results, as well as a slightly favorable effective tax rate.
In terms of its segments, United Tech reported:
- Otis net sales increased 1.9% year over year to $3.10 billion.
- Carrier net sales decreased by 1.2% to $4.32 billion.
- Pratt & Whitney net sales increased 11.3% to $4.82 billion.
- Collins Aerospace Systems increased by 70.6% to $6.51 billion.
In the quarter, Collins Aerospace commercial aftermarket sales were up 64% and up 9% organically. Collins Aerospace commercial aftermarket sales were up 12% on a pro forma basis, including Rockwell Collins.
Looking ahead to the 2019 full year, UTC now expects to see EPS in the range of $7.80 to $8.00 and sales between $75.5 billion and $77.0 billion, including organic sales growth of 3% to 5%. Consensus estimates are calling for $7.90 in EPS and $77.18 billion in revenue for the year.
Gregory Hayes, UTC board chair and chief executive, commented:
United Technologies is off to a strong start in 2019. Sales were up 20 percent with all four businesses contributing to the robust 8 percent organic growth in the quarter. Earnings and cash flow exceeded our expectations for the quarter reinforcing our confidence in the full year financial outlook, including our improved adjusted EPS range.
Shares of UTC were last seen up more than 3% at $141.71, leading the Dow Jones industrials on Tuesday. Its 52-week range is $100.48 to $144.15, and the consensus price target is $142.61.
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