Yahoo Finance Otis Worldwide (OTIS) to Post Tepid Q1 Earnings: Here's Why
Otis Worldwide Corporation OTIS is scheduled to report first-quarter 2023 results on Apr 26, before the opening bell.
In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 2.7% and rose 4.2% year over year. Net sales beat the consensus mark by 3.8% but declined 3.6% year over year.
Otis’ earnings topped the consensus mark in the last 12 quarters.
Trend in Estimate Revisions
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been unchanged at 74 cents in the past 60 days. The estimated figure indicates a 3.9% decrease from the year-ago quarter’s reported level. The consensus mark for net sales is pegged at $3.28 billion, suggesting a 4% decrease from the year-ago reported figure of $3.41 billion.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
Key Factors to Note
The world's leading elevator and escalator manufacturing, installation and service company is expected to have registered lower earnings and sales in the first quarter. Headwinds like commodity inflation and currency fluctuations are likely to have put pressure on the bottom line. OTIS expects tough organic and earnings performance in businesses for the to-be-reported quarter.
New Equipment is anticipated to have registered lower revenues in the first quarter. The Zacks Consensus Estimate for New Equipment’s revenues is pegged at $1.308 billion, which indicates a decrease of 8.7% from $1.422 billion in the year-ago period. The same for the adjusted operating profit indicates a year-over-year fall of 22.7%.
For Service, revenues are expected to have declined in the quarter to be reported. The Zacks Consensus Estimate for Service revenues is pegged at $1.96 billion, which indicates a fall of 1.6% from the $1.992 billion reported in the year-ago period. The same for the adjusted operating profit suggests a 3.7% decline from the year-ago reported figure.
Otis is improving business through various strategies like acquisitions, product innovations, and new technologies through continuous research and development.
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 #3 (Hold).
Stocks With Favorable Combination
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.
Headquartered in Stamford, CT, United Rentals, Inc. URI, the largest equipment rental company in the world, beat on earnings in three of the trailing four quarters and missed on the same on one occasion, the beat being 6.9%.
URI has a Zacks Rank #3 at present and an Earnings ESP of +4.51%.
Headquartered in Toledo, OH, Owens Corning OC, a world leader in building materials systems and composite solutions, surpassed earnings in two of the trailing four quarters and missed on one occasion, the beat being 4.4%.
Owens Corning currently has an Earnings ESP of +3.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Winchester, VA, Trex Company, Inc. TREX, which manufactures and distributes decking, railing, and outdoor living products and accessories, beat on earnings in three of the trailing four quarters and missed on the same on a single occasion, the beat being 7.2%.
Trex has a Zacks Rank of #3 and an Earnings ESP of +11.34% at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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United Rentals, Inc. (URI) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
Trex Company, Inc. (TREX) : Free Stock Analysis Report
Otis Worldwide Corporation (OTIS) : Free Stock Analysis Report
