The world’s largest maker of elevators and air conditioners posted second-quarter earnings per share (EPS) of $1.84 on revenues of $17.2 billion. In the same period a year ago, the company reported EPS of $1.71 on revenues of $16.01 billion. The results also compare to the consensus estimates for EPS of $1.71 on revenues of $16.84 billion.
New equipment orders at its Otis unit grew 3% from the year-ago quarter. UTC Climate, Controls & Security equipment orders gained 2% organically. Large commercial engine spares orders were down 2% at Pratt & Whitney, though commercial spares orders increased 28% at UTC Aerospace Systems.
The company’s CEO said:
Our focus on growth opportunities and execution in our core markets resulted in another solid quarter. We saw a fourth consecutive quarter of organic sales growth, along with strong margin expansion. … With earnings up 11 percent, excluding the impact of restructuring and one-time items, UTC delivered a strong first half of the year. Our solid backlogs, organic growth trends, and focus on execution give us confidence to increase the lower end of our earnings per share range.
The previous range was $6.65 to $6.85 per share. The company raised the lower end of the expected range to $6.75. The consensus estimates for the full year so far call for EPS of $6.86, as well as revenue of $65.34 billion. For the current quarter, EPS is estimated at $1.85 and revenues at $16.31 billion.
The company also said it expects to spend $1.25 billion on share repurchases this year and less than $1 billion in acquisitions.
Shares fell more than 3% in morning trading Tuesday to $109.11 and are down more than 8% since almost reclaiming the 52-week high of $120.66 back in early June. Almost twice the average daily volume had traded hands by midday. The 52-week low is $99.50. The Thomson Reuters consensus analyst price target is $129.37.
Top Gaining Stocks
Top Losing Stocks