On a GAAP basis, UTC reported EPS of $1.58, which includes $0.07 per share of one-time items, compared with a $0.09 negative impact from one-time items in the year-ago quarter. Foreign currency exchange rates had a negative impact of $0.07 per share.
The company’s CEO, Gregory Hayes, reiterated UTC’s previous guidance for 3% to 5% top line growth and full-year sales of $65 billion to $66 billion. He also affirmed full-year EPS guidance of $6.85 to $7.05.
Analysts estimate second-quarter EPS of $1.80 on revenues of $16.65 billion. For the full year, the consensus estimate calls for EPS of $6.98 on revenues of $65.38 billion.
Hayes also said:
We had a good start to the year, despite headwinds from a stronger U.S. dollar. The fundamentals of all of our businesses remained solid, continuing to drive strong organic sales growth and allowing us to increase EPS by 13 percent on a constant currency basis, excluding the impact of gains and restructuring. … Although commercial aerospace aftermarket growth was slower in the quarter than we anticipate for the year, the commercial building business in the U.S. is looking better and I’m encouraged by the signs of growth that we’re seeing in Europe.
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The company’s Pratt & Whitney division lost out on an order from Emirates for engines for 50 Airbus A380 super-jumbo jets. The Engine Alliance joint venture with General Electric Co. (NYSE: GE) lost the bid to the U.K.’s Rolls-Royce. In keeping with the CEO’s remarks, about 70% of the $9.2 billion order is targeted for services and repair over the life of the engines.
Shortly after markets opened Tuesday, shares traded up about 1.6% at $118.45, in a 52-week range of $97.30 to $124.45. Thomson Reuters had a consensus analyst price target of around $132.90 before the report.
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