NYSE$OTIS
Otis Worldwide Corp · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Otis delivered solid second quarter results with high teens New Equipment order growth, mid-single digit organic Service sales growth and low teens adjusted EPS growth
Otis reported second quarter 2022 net sales of $3.5 billion with 0.4% organic growth. GAAP diluted earnings per share (EPS) of $0.76 was flat versus the prior year and adjusted EPS increased 11.7% to $0.86.
- 2Q Net sales down 5.8% and organic sales up 0.4%.
- GAAP EPS ~flat and adjusted EPS up 11.7%
- 2Q New Equipment orders up 16.5%; NE backlog up 6%, adjusted backlog up 10% at constant currency
- Completed the delisting of Zardoya Otis and reached an agreement to divest our Russia business with closing expected imminently
Headline financials
Revenue & EPS history
Otis · Revenue · Quarterly
$3.49B
Revenue by segment
Otis · $3.49B total across 2 segments · Q2 2022
- Service$1.95B-1.0%56.0%
- New Equipment$1.53B-11.2%44.0%
Forward guidance
Otis expects to deliver 2.5 to 3.5% organic sales growth, high single digit adjusted EPS growth and $1.6 billion in free cash flow in 2022.
Tailwinds
- Organic sales up 2.5 to 3.5%
- Organic Service sales up 5.5 to 6.5%
- Adjusted operating profit of $2.1 to $2.2 billion, up $120 to $150 million at constant currency
- Adjusted EPS of $3.17 to $3.21, up 7 to 9%
- Adjusted effective tax rate of 26.5 to 26.7%
Headwinds
- Adjusted net sales of $13.6 to $13.8 billion, down 2 to 3%
- Organic New Equipment sales down 0.5 to 1.0%
- Adjusted operating profit of $2.1 to $2.2 billion, up $5 million to down $25 million at actual currency
- Free cash flow of ~$1.6 billion with conversion of approximately 125% of GAAP net income
- Net sales decreased 5.8% versus the prior year with a 0.4% increase in organic sales that was more than offset by a 5.3% headwind from foreign exchange
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 2022
-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
| Quarter | Report date | Reaction (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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