NYSE$OTIS

Otis Worldwide Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Delivered strong second quarter results with sales growth and margin expansion in both segments and double-digit New Equipment orders growth; improved 2021 outlook

Otis Worldwide Corporation reported strong second quarter 2021 results, with net sales of $3.7 billion, a 22.2% increase compared to the prior year, and organic sales up 15.4%. GAAP EPS increased 46.2% to $0.76, and adjusted EPS increased 41.1% to $0.79. The company improved its full-year outlook, raising the share repurchase target to $750 million.

  • Net sales increased by 22.2%, with organic sales up 15.4%.
  • GAAP EPS increased by 46.2%, and adjusted EPS increased by 41.1%.
  • New Equipment orders increased by 23.9%, and backlog increased by 10%.
  • GAAP cash flow from operations was $533 million, and free cash flow was $493 million, representing 151% of net income.

Headline financials

Total Revenue

$3.7B

Previous: $3.03B+22.2%
EPS (adj)

$0.79

Previous: $0.56+41.1%
Organic Sales Growth

15.4%

Previous: -6.5%+336.9%
Free Cash Flow

$326M

Previous: $224M+45.5%
Net Income

$326M

Previous: $224M+45.5%
Operating Income

$561M

Previous: $416M+34.9%
Gross Profit

$1.08B

Previous: $891M+20.7%
Cash & Equivalents

$1.92B

Previous: $1.91B+0.6%
Total Assets

$10.9B

Previous: $10.4B+4.0%
Stock-Based Comp

$17M

Previous: $16M+6.3%

Revenue & EPS history

Otis · Revenue · Quarterly

$3.7B

Q2 2021+22.2%vs Q2 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Otis · $3.7B total across 2 segments · Q2 2021

  • Service
    $1.97B
  • New Equipment
    $1.73B+33.5%

Forward guidance

Otis is improving its full year outlook:

Tailwinds

  • Net sales of $14.1 to $14.2 billion, up 10.5 to 11%
  • Organic sales up 7.5 to 8%
  • Organic New Equipment sales up 12 to 13%
  • Organic Service sales up 4 to 4.5%
  • Adjusted operating profit of $2.16 to $2.18 billion, up $240 to $260 million at actual currency; up $170 to $190 million at constant currency

Headwinds

  • Adjusted EPS of $2.89 to $2.93, up 15 to 16%; adjusted effective tax rate of approximately 29.0%
  • Free cash flow of $1.45 to $1.5 billion with conversion of approximately 120% of GAAP net income

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 Q2 2021

Historical avgQ2 2021

-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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