FARMINGTON, Conn. - Otis Worldwide Corporation (NYSE:OTIS) announced a second-quarter earnings beat, with adjusted EPS climbing to $1.06, surpassing analyst predictions by $0.04.
However, the company's quarterly revenue of $3.6 billion fell short of the $3.73 billion consensus estimate.
The global leader in elevator and escalator manufacturing reported a 15.2% year-over-year increase in adjusted EPS, attributed to robust operational performance and an improved effective tax rate. Despite a 3.2% decline in net sales compared to the previous year, Otis' service net sales rose by 3.0%, with organic service sales experiencing a 5.1% uptick.
Judy Marks, Chair, CEO, & President, highlighted the company's strong service segment performance, which saw a 4.2% growth in its maintenance portfolio and margin expansion. "Our overall performance delivered mid-teens EPS growth," Marks stated. She also noted the company's successful execution of its modernization strategy, with orders and backlog up significantly, prompting an upward revision of the EPS outlook for the full year.
For the full year 2024, Otis revised its guidance, now expecting adjusted EPS to be between $3.85 and $3.90, which is in line with the analyst consensus of $3.86. However, the company trimmed its full-year revenue forecast to a range of $14.3 to $14.5 billion, falling below the consensus estimate of $14.612 billion.
Otis anticipates organic sales to grow by 1% to 3%, with organic service sales expected to increase by 6% to 7%. Conversely, organic new equipment sales are projected to decline by mid-single digits. The company also forecasts an adjusted operating profit of $2.40 billion to $2.45 billion, marking an increase at constant currency.
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