NYSE$OTIS

Otis Worldwide Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Delivered solid first quarter results driven by mid-single digit organic Service growth and strong New Equipment orders performance.

Otis Worldwide Corporation reported a decrease in net sales by 2.0% to $3.3 billion, but organic sales increased by 3.6%. GAAP EPS increased by 8.2% to $0.79, and adjusted EPS increased by 5.3% to $0.80. New Equipment orders were up 7.4%, and the maintenance portfolio units increased by 4.2%.

  • 1Q Net sales down 2.0% and organic sales up 3.6%. GAAP EPS up 8.2% and adjusted EPS up 5.3%
  • 1Q New Equipment orders up 7.4%; NE backlog up 3%, adjusted backlog up 10% at constant currency
  • Maintenance portfolio units increased 4.2%
  • 1Q GAAP cash flow from operations of $278 million; free cash flow of $253 million, or 76% of net income

Headline financials

Total Revenue

$3.35B

Previous: $3.41B-2.0%
EPS (adj)

$0.80

Previous: $0.77+3.9%
Organic Sales Growth

3.6%

Previous: 3.1%+16.1%
Free Cash Flow

$331M

Previous: $311M+6.4%
Net Income

$331M

Previous: $311M+6.4%
Operating Income

$513M

Previous: $526M-2.5%
Gross Profit

$996M

Previous: $1.01B-1.0%
Cash & Equivalents

$1.12B

Previous: $1.24B-9.6%
Total Assets

$9.85B

Previous: $11.8B-16.5%
Stock-Based Comp

$15M

Previous: $13M+15.4%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.35B

Q1 2023-2%vs Q1 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Otis · $3.35B total across 2 segments · Q1 2023

  • Service
    $2.04B+2.4%
  • New Equipment
    $1.31B-8.1%

Forward guidance

Otis is revising its full year outlook: Adjusted net sales of $13.9 to $14.2 billion, up 2.5 to 4.5%, Adjusted EPS of $3.40 to $3.50, up 7 to 10%; and reiterating free cash flow of $1.5 to $1.55 billion.

Tailwinds

  • Adjusted net sales of $13.9 to $14.2 billion, up 2.5 to 4.5%
  • Organic sales up 4 to 6%
  • Organic New Equipment sales up 3 to 5%
  • Organic Service sales up 5 to 7%
  • Adjusted EPS of $3.40 to $3.50, up 7 to 10%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.1%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+4.0%

Avg return

30 days after

30%

9 / 30 earnings

Positive

+10.8%

Q1 2021

Best reaction

-6.7%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-1.8%-7.7%
Q4 2025-1.9%-4.9%+2.2%
Q3 2025+2.3%-1.2%-2.7%
Q2 2025-1.9%-0.7%-0.2%
Q1 2025-6.7%-5.4%-2.2%
Q4 2024-1.3%-1.4%+4.1%
Q3 2024-3.1%-1.9%+1.6%
Q2 2024-5.4%-5.4%-4.2%
Q1 2024-4.6%-4.2%+0.1%
Q4 2023-0.5%+1.0%+6.3%
Q3 2023-2.3%-0.9%+10.1%
Q2 2023+2.4%+3.9%-4.2%
Q1 2023+3.9%+4.0%-1.0%
Q4 2022+2.0%+1.8%+5.7%
Q3 2022+1.7%+2.6%+14.3%
Q2 2022+5.7%+7.6%+3.5%
Q1 2022-1.4%-0.8%+0.1%
Q4 2021+1.0%-0.4%-4.8%
Q3 2021-6.3%-6.2%-1.4%
Q2 2021-0.3%+1.2%+2.9%
Q1 2021+10.8%+9.2%+9.1%
Q4 2020-0.0%-1.1%+3.6%
Q3 2019-1.9%+0.3%+8.7%
Q3 2020-2.3%-3.4%+6.2%
Q2 2019-0.3%-0.5%+0.3%
Q2 2020+10.3%+7.6%+8.4%
Q1 2019+0.0%-6.9%+13.0%
Q1 2020+0.0%-6.9%+13.0%
Q4 2019+0.0%-6.9%+13.0%
Q4 2018+0.0%+2.9%+21.2%

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